HSBC expects Bank Negara to hold OPR at 2.75% in May


File pic — AZMAN GHANI / The Star

KUALA LUMPUR: The Hongkong and Shanghai Banking Corporation Ltd (HSBC) has forecast that Bank Negara Malaysia (BNM) would hold its Overnight Policy Rate (OPR) steady at 2.75 per cent in May as Malaysia's economic data remains resilient.

HSBC said in a research note that it would however keep an eye on BNM’s tone on its assessment on the inflation trajectory, as it now largely depends on the fiscal adjustments in the RON95 policy, if any.

In the note, it said Malaysia is in a relatively better position to weather the energy shock as one of Asia’s few net energy exporters.

"On growth, BNM is likely to maintain its cautious optimistic tone and continue acknowledging external challenges. 

"Overall, we do not expect BNM to move in either direction in 2026 and 2027," added.

BNM’s Monetary Policy Committee will hold its third meeting for this year on May 7. - Bernama 

 

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