Malaysian Ringgit: BNM seen on steady policy path – DBS
DBS Group strategists Taimur Baig and Nathan Chow expect Bank Negara Malaysia (BNM) to keep its Overnight Policy Rate unchanged at 2.75% on September 3, maintaining the stance adopted after its July 2025 insurance cut.
DBS Group strategists Taimur Baig and Nathan Chow anticipate Bank Negara Malaysia (BNM) will maintain its Overnight Policy Rate (OPR) at 2.75% during a meeting on September 3, mirroring the stance taken after the July 2025 insurance rate cut. They cite contained Malaysian inflation and a projected 5% growth in 2026, suggesting little need for rate hikes despite market expectations.
BNM is likely to continue evaluating if the current monetary policy remains suitable for economic growth while ensuring price stability. Consequently, the 2026 growth outlook is around 5%. Although some analysts anticipate a rate increase from BNM in upcoming meetings, the strategists believe there is no immediate urgency for such a move.
Malaysia's inflation has been stable despite geopolitical tensions, falling to 1.8% year-over-year in July 2026, the lowest since March and aligned with the central bank's 1.5-2.5% forecast for the year.
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