AmBank expects 50 basis points OPR hike to 2.5%

KUALA LUMPUR: AmBank Research expects Bank Negara to increase the overnight policy rate (OPR) by 50 basis points (bps) at the upcoming meeting in July, bringing the OPR to 2.50%.

“We expect inflation to be between 2.8% - 3.0% for 2022. With the first five months' average at 2.4%, to achieve our target of 2.8%-3.0%, the next seven months' average should hover between 3.0% and 3.5% which is seen within our target. Last year’s average between June 2021 to December 2021 was 2.8%,” group chief economist/head of research Anthony Dass said in the report.