New OPR to be announced, expect it to be retained

Bank Negara Malaysia is scheduled to announced the new overnight policy rate (OPR) and many are expecting it to be retained at 2.75%.

The confidence stems from the Ringgit Malaysia that has been able to hold its position at RM4.20 against the US Dollar since May.

It is against this back drop and US Federal Reserve expected to cut rates, that the BNM Monetary Policy Committee would be determining the new rates.

Fed chair Jerome Powell hinted on Aug 22 that the central bank may lower interest rates as soon as September due to high levels of uncertainty.

JP Morgan Global Research, in a mid-August research, also projected a Fed rate cut in September.

The OPR was reduced by 25 base points in July as a preemptive measure to support growth.