Kenanga Research: Given that growth and inflation outlook are expected to moderate this year amid downside risk from the external front, we foresee a small probability that BNM will resume its rate hike in the near term.
BNM’s Monetary Policy Committee (MPC) in its meeting on Thursday announced maintaining the OPR at 2.
Thursday's decision to maintain the OPR at 2.
This is the second consecutive time the central bank maintained its benchmark interest rate after four straight hikes last year by a cumulative 100 basis points to tame inflation and respond to tightening fiscal policy by the US Federal Reserve.
“I want to stress… we do not set our OPR based on other central banks’ decisions on their monetary policy.
"Cuepacs is concerned about the needs of the people at the moment who have to go into debt to continue living due to insufficient wages to cover the high living cost.
On Jan 19, the Monetary Policy Committee of BNM decided to maintain the OPR at 2.
Fitch Solutions said while core inflation remains on a firm uptrend, the headline inflation is expected to stay above the central bank’s target at least through the first half of the year, especially with negative real interest rates.
BNM said the country's growth in 2023 is expected to moderate amid a slower global economy, likewise the headline and core inflation figures — though the latter two will remain elevated amid lingering demand and cost pressures.
It said the market overwhelmingly expects BNM to raise the rate by 25 basis points, its fifth in a row, at the Monetary Policy Committee (MPC) meeting on Thursday.
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