BNM governor says OPR cut pre-emptively to preserve steady growth path
Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour: The MPC is not on any pre-set course.
Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour: The MPC is not on any pre-set course.
Malaysian REITs would still leverage on robust domestic spending, lower bond yields and active inorganic growth strategies, according to RHB Investment Bank Bhd.
Australia and New Zealand Banking Group (ANZ Research) in a note said BNM has historically only made back-to-back cuts during major shocks such as the Covid-19 pandemic or the Global Financial Crisis.
Prime Minister Datuk Seri Anwar Ibrahim said the Monetary Policy Committee’s (MPC) move was based on careful assessments of current economic and inflation forecasts.
About half of 23 economists polled predict a cut from 3%, while the rest expect the central bank to stand pat.
Leading loan indicators were also mixed—loan approvals rose, applications moderated and disbursements declined.
"If the Fed stays on hold for longer, or the unwinding of fuel subsidies sends inflation too high, BNM may be content to keep the OPR at 3%.
BNM noted that while the global economy is still expanding, the recent US tariffs and retaliatory measures have negatively impacted the outlook for global trade and growth.
“Continued observations of preferences for more flexible tenancy contracts and hybrid work arrangements suggest adjustments in supply still have some way to go.
Overall outstanding housing loans grew by 6.