Kuala lumpur: Moody’s Analytics anticipates that Bank Negara Malaysia (BNM) will maintain its overnight policy rate (OPR) at 2.75 percent during its upcoming monetary policy meeting this Thursday.

According to BERNAMA News Agency, Moody’s Analytics highlighted in its Asia Pacific Weekly Highlights and Preview research note that the central bank previously implemented a 25 basis points reduction in the OPR in July. This move was intended as a pre-emptive measure in response to an increasingly uncertain external environment.

Since the July rate cut, industrial production and export figures have exceeded expectations. Additionally, Moody’s Analytics noted that a potential rate cut by the US Federal Reserve in September, coupled with subdued headline inflation, could provide BNM with the flexibility to loosen monetary policy should external conditions worsen.

On July 9, BNM announced a reduction in the ceiling and floor rates of the OPR corridor to three percent and 2.5 percent, respectively, following the pre
vious rate cut. The central bank last maintained the OPR at 2.75 percent in March 2023, after which it was increased to three percent in May 2023.