KUALA LUMPUR, Nov 2 — Standard Chartered expects Bank Negara Malaysia (BNM) to raise the overnight policy rate (OPR) by 25 basis points (bps) to 2.75 per cent, the fourth consecutive 25bps hike since May this year.
BNM is scheduled to announce its monetary policy decision on November 3 and given Malaysia’s strong growth recovery and simmering inflation, Standard Chartered does not expect the central bank to send a clear signal that it will stop after the November hike.
In its Global Research report released today, Standard Chartered said BNM may turn more data-dependent going forward.
“BNM may sound even more neutral at the upcoming meeting, given that it will have delivered 100bps of rate hikes (assuming a 25bps move to 2.75 per cent in November),” Standard Chartered said.
In its previous policy statement, Standard Chartered noted that BNM continued to assess its stance as “accommodative and supportive” of economic growth.
“We read this as meaning that BNM is still looking to remove further accommodation. However, the central bank also noted that the committee is not on any ‘pre-set course’, and this suggests that a pause may be coming soon, in our view,” it added.
— Bernama
