Bank Negara likely to hold OPR

Kenanga Research said the central bank is not expected to cut rates in 2023 or 2024.

PETALING JAYA: Kenanga Research foresees that Bank Negara has reached the end of its monetary tightening cycle and will keep the overnight policy rate (OPR) unchanged at 2.75% for the rest of the year.

This is predicated on a further downtrend in headline and core inflation to below 3% and an expected global economic slowdown amid tighter financial conditions, which could weigh on domestic growth over the next year.