OPR cut not significant impact as economy contracts

However, due to an expected contraction in the economy, “we do not expect the impact to be significant as Malaysia economy is expected to contract in 2020F”, it said.

KUALA LUMPUR: Bank Negara Malaysia’s move to cut the Overnight Policy Rate (OPR) by 25 basis points will not have a significant impact as the economy is expected to contract this year.

CGS-CIMB Equities Research said on Wednesday that overall OPR cuts tend to be positive for cyclical sectors such as property, auto, and consumer due to the increase in consumers’ disposable incomes.