OPR adjustment positive for automotive sector

Market leader: Customers checking out Perodua cars in Petaling Jaya. Out of 22,960 vehicles sold in May, nearly 60% comprised national makes.

PETALING JAYA: The latest round of interest rate cuts is expected to be mildly positive for the local automotive sector, as it will increase consumers’ disposable income.

The cut in the overnight policy rate (OPR), however, is unlikely to have a significant impact, as the Malaysian economy is expected to contract this year, said CGS-CIMB in a report yesterday.