KUALA LUMPUR – The overnight policy rate (OPR), currently at 3%, is anticipated to remain unchanged throughout 2024, said MIDF Research.
The research firm said Bank Negara Malaysia (BNM) is focusing on sustaining growth momentum in the Malaysian economy through its monetary policy.
“Domestic economic outlook is predicted to remain vigilant and resilient, underpinned by steady domestic demand.
“However, we believe that the stabilisation of core inflation and the challenging external environment may influence BNM to keep the OPR at current levels throughout 2024,” it said in a note.
It added that despite expectations of external trade recovery, the global environment is expected to remain challenging in 2024 due to ongoing geopolitical tensions and potential deceleration in global growth.
In a separate research note, OCBC Bank (Malaysia) Bhd echoed similar sentiments, noting BNM’s comfort with current monetary policy settings, expecting improved growth with manageable inflationary pressures.
The bank said BNM remains optimistic about domestic growth prospects, anticipating a rise in exports driven by the global tech upcycle and sustained strength in non-electrical and electronics goods.
Factors supporting domestic growth such as household spending and investment activities, propelled by multi-year projects in both private and public sectors, along with catalytic initiatives under national master plans, remain unchanged from the March meeting.
“Hence, our gross domestic product growth forecast for 2024 stands at 4.2%, compared to 3.7% in 2023, within BNM’s forecast range of 4 to 5%,” added the bank. – May 9, 2024