BNM expected to hold OPR till year-end but has room for 25 bps adjustment: Kenanga Research

KUALA LUMPUR: Kenanga Research foresees that Bank Negara Malaysia (BNM) has reached the end of its monetary tightening cycle and will keep the Overnight Policy Rate (OPR) unchanged at 2.75 per cent for the rest of the year.

This is predicated on a further downtrend in headline and core inflation to below 3.0 per cent and an expected global economic slowdown amid tighter financial conditions, which could weigh on domestic growth over the next year.