BNM Expected To Keep OPR At 2.75 Pct In Upcoming November Meeting

KUALA LUMPUR, Sept 21 (Bernama) -- Apex Securities Bhd expects Bank Negara Malaysia (BNM) to keep the overnight policy rate (OPR) on hold at 2.75 per cent at its upcoming Monetary Policy Committee (MPC) meeting in November.

It said the still-benign inflation outlook suggests there is no urgency for BNM to adjust monetary policy at this juncture, supporting its expectation for the central bank to maintain the OPR at 2.75 per cent.

“Further out, given the positive domestic economic outlook, steady inflation and monetary tightening in major advanced economies, we expect BNM to raise the policy rate by 25 basis points (bps) in 2027, normalising the OPR to three per cent,” it said in a research note.

Apex Securities also said it maintained its 2026 and 2027 inflation forecasts at two per cent year-on-year (y-o-y), while near-term inflation risks remain tilted to the upside, mainly due to cost-related pressures.

It noted that, notwithstanding the upside risks, inflation has remained mostly below two per cent even amid the West Asia conflict, reflecting subsidy policy adjustments that have kept price pressures in check.

It explained that the government recently restored the BUDI95 monthly quota to 300 litres and raised the BUDI diesel quota to 400 litres, effective September.

“Meanwhile, the household electricity subsidy threshold has been raised to 800 kilowatt-hours (kWh) per month from 600 kWh until Dec 31, 2026, cushioning households from higher electricity costs amid hazier weather conditions.

“These measures should help preserve household purchasing power and support domestic spending,” it added.

-- BERNAMA