Will Bank Negara Malaysia adjust the OPR based on current economic conditions?

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Bank Negara Malaysia is expected to keep the OPR unchanged at 2.75 per cent.

Bank Negara Malaysia’s Monetary Policy Committee is scheduled to meet on Thursday, July 9, and the expectation is that the overnight policy rate will stay at 2.75 per cent. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there are no compelling reasons for BNM to change the prevailing monetary stance.
The decision is tied to the July 9 MPC meeting.
The MPC meeting falls on the same day as the release of the United States Federal Open Market Committee minutes, which is also on Thursday, July 9. Market attention is centred on both events because traders, investors and economists are watching for signals on interest rates.
The current view is for no rate change.
Dr Mohd Afzanizam said BNM will likely keep the OPR steady at 2.75 per cent. That view was linked to the absence of compelling reasons to alter the current policy setting.
The ringgit is trading in a narrow range ahead of the meeting.
The ringgit is expected to trade between RM4.05 and RM4.07 against the US dollar next week. On a Friday-to-Friday basis, it strengthened to 4.0690/0735 from 4.0860/0910 a week earlier, which places the currency close to the RM4.05 level that market participants are watching.
Markets are also watching the US interest-rate outlook.
The FOMC minutes are being watched for clues on the direction of US interest rates, especially after the June FOMC meeting gave no forward-looking guidance. That external backdrop is part of the market focus surrounding the BNM meeting, even though the expected local decision is to leave the OPR unchanged.

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Will Bank Negara Malaysia adjust the OPR based on current economic conditions?

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