BMI expects OPR to stay at 3% until 2024 amid easing inflation, slow economic growth
The projection was driven by the ease of headline inflation year on year (y-o-y) to 2% in July 2023, from 2.
The projection was driven by the ease of headline inflation year on year (y-o-y) to 2% in July 2023, from 2.
“Looking ahead, we believe that the BNM will be wary of loosening monetary policy too soon.
In a report on Thursday (May 4), BMI, a Fitch Solutions company, said that as inflation continues to moderate domestically, "we believe BNM will increasingly turn its focus to supporting growth over the coming months".
“Since predicted good performance in both PHEVs and BEVs promotes EV adoption, we predict that total EV sales as a percentage of total sales will surpass the 1% threshold by 2024.
Looking ahead, Fitch Solutions expects the fading of base effects and pent-up demand, tighter credit conditions, and a weakening global growth outlook to pose significant growth headwinds.
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.
KUALA LUMPUR (Nov 22): Fitch Solutions Country Risk & Industry Research said Malaysia's Covid-19 recovery will extend into 2022.
KUALA LUMPUR (Nov 10): Fitch Solutions Country Risk and Industry Research is forecasting Malaysia’s 2022 fiscal deficit to come in at 6.
KUALA LUMPUR (Nov 4): Fitch Solutions, the research unit of Fitch Group, is expecting Bank Negara Malaysia to raise the overnight policy rate (OPR) by 50 basis points (bps) to 2.
KUALA LUMPUR (Oct 25): Fitch Solutions Country Risk and Industry Research on Monday (Oct 25) said it had revised upwards its 2021 real gross domestic product (GDP) growth forecast for Malaysia to 1.