Kuala lumpur: Bank Negara Malaysia (BNM) is expected to maintain the Overnight Policy Rate (OPR) at 3.0 per cent at its Monetary Policy Committee meeting on July 9, with the balance of risks tilted towards one cut, said RHB Investment Bank (RHB IB).

According to BERNAMA News Agency, RHB IB mentioned in a research note that any adjustment would depend on potential pre-emptive cuts should United States tariffs exacerbate. It added that the extent to which this injects downside risks to Malaysia’s second-half 2025 gross domestic product (GDP) could potentially drag growth below 4.0 per cent.

RHB IB noted that most other central banks are also expected to maintain their policy parameters unchanged in July. This includes Indonesia on July 16, China on July 21, the Eurozone on July 24, and the US Federal Reserve on July 30.

Similarly, the Monetary Authority of Singapore (MAS) is expected to keep its current policy stance. However, RHB IB highlighted that rising market volatility, coupled with a strong Singapore
dollar nominal effective exchange rate levels, could prompt policymakers to widen the policy band to around 3.0 per cent from the current 2.0 per cent.