OPR cut is supportive of economic growth


CGS International Research is maintaining its 2025 consumer price index forecast at 2% y-o-y.

PETALING JAYA: The 25 basis points (bps) cut to the overnight policy rate (OPR) to 2.75% on July 9, is growth-supportive rather than inflationary, given the benign inflation environment, according to Maybank Investment Bank (IB) Research.

In a report, the research house said with the first half 2025 average inflation rate of 1.4%, its full-year 2025 inflation forecast of 2% implied upside risk to inflation in the second half of the year.

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