BNM SEEN HOLDING OPR AT 3 PCT – ECONOMISTS

By Anas Abu Hassan

KUALA LUMPUR, March 6 (Bernama) -- Bank Negara Malaysia is expected to keep the overnight policy rate (OPR) at 3.00 per cent during its Monetary Policy Committee (MPC) meeting today, amid a stable interest rate environment, economists said.  

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said a steady rate environment supports economic expansion by providing businesses and consumers with greater certainty in financial planning and credit access.  

"Stability in borrowing costs sustains capital investment, mitigates excessive volatility in household debt servicing, and ensures an optimal balance between growth and inflation control," he told Bernama.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid also expected the MPC to leave the OPR unchanged.  

He said the decision would likely be based on the anticipated policy adjustment to fuel subsidies, particularly the RON95 petrol price, which is expected around mid-year.  

"We believe BNM may want to assess inflation dynamics to determine whether the prevailing monetary stance can effectively anchor inflation expectations.

"At the same time, downside risks to growth remain visible, particularly given the disruptive nature of the Donald Trump administration, which could potentially weaken global growth," he said.

Mohd Afzanizam said maintaining the OPR would help support economic growth while keeping inflation risks in check.  

-- BERNAMA