KUALA LUMPUR – Moody’s Analytics is anticipating Bank Negara Malaysia (BNM) to leave its Overnight Policy Rate (OPR) at 3.0% on Thursday.
As that is still below where it was in early 2019, Moody’s Analytics said it expects BNM to leave rates on hold through 2025.
“Malaysia’s central bank will give an update on its monetary policy settings on Thursday.
“While the New Zealand and Philippine central banks have lowered interest rates in recent weeks, BNM will likely leave its OPR at 3.0% through 2025,” it said in its Economic Weekly Highlights & Preview note released on August 30, 2024.
It further said interest rate hikes in Malaysia were not as aggressive as those elsewhere in the region and the country’s benchmark rate is still lower than it was in early 2019 (3.25%).
“Having been one of the worst performing currencies in Asia last year, the ringgit has been appreciating in recent months.
“BNM will likely want to sustain that trend by keeping interest rates steady,” said Moody’s Analytics. – September 2, 2024