OPR to remain at 3.00%: Experts now say
The Monetary Policy Committee of the Bank Negara Malaysia (BNM) will meet on 6 – 7 March to decide on monetary policy.
Octa’s experts expect that the interest rate will be unchanged at 3.00% and that the accompanying rhetoric will significantly impact the ringgit.
BNM and OPR
The January inflation figures, together with weaker real GDP growth, show that Bank Negara Malaysia will likely continue keeping the overnight policy interest rate stable at 3.00%. Policymakers have stepped up their rhetoric to contain the fall of local currency.
The policy statements had a positive effect on the ringgit. The interest rate gap to the Fed Funds rate of 250 basis points is prompting foreign investors to withdraw capital from the domestic market.
If the Monetary Policy Committee leaves the rate unchanged, the USDMYR might decline to the critical support level of 4.6000–4.6200 in the short term.
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