Research houses see higher OPR in H2

KUALA LUMPUR: Research houses are projecting that the authorities will increase the overnight policy rate (OPR) by 25 basis points in the second half of this year due to upward inflationary pressures.

Maybank Investment Bank Research said an OPR hike was imminent and that upward inflationary pressure remained due to higher domestic cost.

“We expect a 25–50 basis points increase in the OPR during the second half of this year, when there are three monetary policy committee meetings in July, September and November,” it said in a note.

RHB Research, meanwhile, said the central bank had in its monetary policy statement on Thursday laid the ground for a possible adjustment in monetary accommodation in the near future.

It said the “adjustment” was to ensure that risks arising from the imbalances would not hamper economic growth.

“This is in line with our expectation of a 25-basis-point hike in the OPR towards the late third quarter this year,” it said.

Bank Negara maintained the OPR at 3% on Thursday, keeping it unchanged for more than two years. — Bernama