Can a higher OPR help stem outflows?

Bank Negara is expected to meet again on Sept 7-8 and early November to round up its meeting calendar for this year and all bets are on that the central bank would have no choice but to raise rates by at least 25 bps in the next meeting and perhaps another 25 bps in the last meeting in November. This will bring the total OPR hike for this year to 100 bps to 2.75%.

FOLLOWING the global trend, Bank Negara has joined hands with other central banks to curb inflationary pressure by raising the domestic overnight policy rate (OPR) by another 25 basis points (bps) in its last meeting in July.

Bank Negara is expected to meet again on Sept 7-8 and early November to round up its meeting calendar for this year and all bets are on that the central bank would have no choice but to raise rates by at least 25 bps in the next meeting and perhaps another 25 bps in the last meeting in November.