Bank Negara expected to hold interest rate as it keeps an eye on growth

AllianceDBS Research chief economist Manokaran Mottain, who does not expect a rate cut this year, told StarBiz any move in that direction would depend on the economy

PETALING JAYA: Bank Negara is likely to maintain the overnight policy rate (OPR) steady at the current 3.25% level despite threats of a trade war and government spending cuts that threaten to ease economic growth, said economists.

They said the central bank would likely prioritise supporting economic growth locally despite the rising rate environment in the United States, and that this focus is likely to be supported by moderating inflation expectations.