KUALA LUMPUR, March 2 (Bernama) -- Malaysia’s loan growth is expected to expand within 5.0 per cent to 5.5 per cent this year, up from 4.8 per cent in 2025, supported by a favourable base effect at end-2025 and steady domestic demand, said Kenanga Investment Bank Bhd (Kenanga IB).
In a research note today, the investment bank said it expects loan momentum to gradually pick up toward year-end despite a soft start in January.
“Current performance aligns with seasonal trend, as January and February typically record weaker month-on-month growth.
“Nonetheless, seasonal demand such as Chinese New Year and Eid al-Fitr should provide near-term support,” it said.
Meanwhile, regarding the overnight policy rate (OPR), Kenanga IB expects Bank Negara Malaysia to keep the rate unchanged at 2.75 per cent at the upcoming Monetary Policy Committee meeting on March 5.
“With gross domestic product growth steady and inflation manageable, supported by stable demand and ample supply, we expect the OPR to remain unchanged through 2026, barring unexpected global shocks,” Kenanga IB added.
-- BERNAMA
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