OPR likely to stay unchanged
KUALA LUMPUR: Bank Negara Malaysia is likely to keep the Overnight Policy Rate (OPR) unchanged at 3.00 per cent today.
Its Monetary Policy Committee will release the latest assessment today.
Standard Chartered Bank expects the policy rates to stay unchanged for now unless high headline inflation has a larger pass-through to core prices.
“As such, we expect the central bank to keep policy rates unchanged for now, unless high headline inflation has a larger pass-through to core prices.”
It highlighted improved external demand and downside risks, including protectionism and the recent fall in key commodity prices.
At 3.00 per cent, AmResearch said the level was supportive of the overall economic activities as well as the stability of the ringgit.
“The contribution from domestic demand is poised to remain sustainable with an improving external trade. It will help lift the overall economic activities.”
It expects the Consumer Price Index to stay high during the year, driven by costpush pressures. However, the negative rate could potentially ease should the upwards