Kuala lumpur: Manulife Investment Management (Manulife IM) expects Bank Negara Malaysia (BNM) to reduce its Overnight Policy Rate (OPR) further in the second half of 2025 (2H2025) amid shifting global and domestic dynamics, supported by ongoing investor interest in the country’s bonds and currency market.

According to BERNAMA News Agency, Manulife IM’s Asia ex-Japan Fixed Income head, Murray Collis, noted that the environment has become more balanced recently. He indicated that the central bank might consider another rate cut, driven by recent trade developments and their potential impact on domestic economies.

Collis emphasized a favorable outlook for Malaysian bonds and currency, stating, “From the bond market perspective, we still like Malaysian rates and currency.” He made these remarks during a virtual media briefing on the 2025 Mid-Year Regional Market Outlook.

He further explained that local bonds are expected to benefit from the current easing cycle, with the market still offering reasonable yields. Additionally, Malaysia’s currency is seen as attractive from a longer-term perspective.

Recently, Bank Negara Malaysia’s Monetary Policy Committee announced a 25-basis point reduction of the OPR to 2.75 per cent, with the ceiling and floor rates of the corridor of the OPR correspondingly reduced to three per cent and 2.5 per cent, respectively. The last time the OPR was held at 2.75 per cent was in March 2023 before it was increased to three per cent in May 2023. BNM’s next Monetary Policy Committee Meeting is scheduled for September 4, 2025.