Kuala lumpur: Maybank Investment Bank Bhd (Maybank IB) anticipates that Bank Negara Malaysia (BNM) will decrease its overnight policy rate (OPR) by 25 basis points (bps) during the upcoming Monetary Policy Committee (MPC) meeting scheduled for July 9, 2025.

According to BERNAMA News Agency, the investment bank mentioned in a note today that although current economic data have not yet reached a critical point for a cut, early indications of slowing growth momentum and increasing external challenges justify a proactive approach. This is particularly important as policy transmission tends to operate with a delay.

Maybank IB highlighted that the dovish May MPC statement has created an opportunity for BNM to ease its policy. From a risk management standpoint, the bank believes that the danger of delaying a rate cut is greater than that of implementing it prematurely.

Additionally, Maybank IB observed that ringgit bonds showed slight improvement last week, with the yield curve between flat and three basis points lower. In contrast, ASEAN local bonds maintained their gains despite the selloff in United Kingdom gilt-edged securities and the pressure on United States Treasuries following non-farm payroll data.

Maybank IB further noted that since the rate cut has already been fully anticipated by the market, reactions will likely depend on the tone of the announcement, whether it projects a neutral or dovish outlook. Alternatively, if the rate is held steady, it could lead to some upward adjustments in yields.