Maybank IB Expects BNM To Maintain OPR Rate At 2.75 Pct Until Year-end
KUALA LUMPUR, July 17 (Bernama) -- Maybank Investment Bank Bhd (Maybank IB) expects Bank Negara Malaysia (BNM) to keep the overnight policy rate (OPR) at 2.75 per cent for the rest of the year after the 25 basis points reduction on July 9.
Based on the briefing following last week's monetary policy committee meeting, Maybank IB's group chief economist, Suhaimi Ilias, said the investment bank believes that BNM is likely adopting a 'one-cut-and-done' approach to rate cuts.
'At the moment, we don't expect any more cuts from BNM. I know they have flagged the downward revision to gross domestic product (GDP) growth at the end of this month. Currently, the official growth forecast for this year is 4.5 - 5.5 per cent.
'I think the message seems to be that it's not a major downward revision. So I guess that also suggests that BNM has factored in the rate cut impact on the economy,' he said during a virtual media briefing on Maybank IB's Market Outlook for the second half of the year (2H 2025) today.
He said the interest rate cuts will be positive for consumer spending, which is the biggest component of ASEAN economies' GDP.
'Based on GDP numbers up to the first quarter of this year, private consumption is resilient in Malaysia, the Philippines and Indonesia, and retail sales for Vietnam as well as Singapore are improving as well,' he said.
Suhaimi added that the investment bank has also maintained its GDP forecast for Malaysia at 4.1 per cent growth this year, down from last year's average of 5.1 per cent.
'We have already revised our GDP number twice. The first time was in April, following the (United States) Liberation Day announcement of a reciprocal tariff, where we had factored in the impact of a 24 per cent tariff come July 9, although that deadline has been extended to Aug 1 with the tariff at 25 per cent.
'It is not much of a difference in terms of the potential tariff that Malaysia will face come Aug 1. We still have some time left to negotiate and deal with the US to get to a better landing as far as tariff is concerned,' he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
21 minutes ago
- The Star
India extends free etourist visa for Malaysians till Dec 31 next year
KUALA LUMPUR: (Bernama) Malaysians will continue to enjoy a 30-day double-entry e-Tourist visa at no cost, as New Delhi has extended the facility until Dec 31, 2026, the Indian High Commission in Kuala Lumpur announced. The 30-day e-Tourist visa can be applied online at the official e-visa link at All other categories of e-visas, including e-Business, e-Conference, e-Medical, e-Ayush, e-Emergency X Miscellaneous, will require payment of visa fees as prescribed, a statement from the Indian High Commission said. Existing rules regarding e-Tourist visas and other e-visas mentioned at will continue to apply. "Those who wish to obtain regular paper visas from the Indian Consular Application Centres in six cities across Malaysia outsourced to M/s IVS Global Services (website: or from the High Commission of India in Kuala Lumpur, will continue to pay the prescribed visa fees,' the statement read. In June last year, India announced that Malaysians would be granted a 30-day double-entry e-Tourist visa on a gratis (no fee) basis for one year, from July 1, 2024 to June 30, 2025. - Bernama
Free Malaysia Today
an hour ago
- Free Malaysia Today
Penang govt identifying locations for floating solar projects
State infrastructure, transport and digital committee chairman Zairil Khir Johari said areas such as the Teluk Bahang and Mengkuang dams were potential locations for the floating solar farms. (Bernama pic) GEORGE TOWN : The Penang government plans to develop floating solar projects in line with its efforts to achieve a target of 10% renewable energy by 2030. State infrastructure, transport and digital committee chairman Zairil Khir Johari said the project was a suitable alternative in expanding the renewable energy sources due to the state's land constraints and the high cost of developing ground-mounted solar farms. Presently, he said, his team is considering strategic locations with potential to implement the project, including dam areas such as the Teluk Bahang dam and Mengkuang dam. 'Dams are most suitable for a floating solar project in terms of area and water stability, unlike the sea where there are unique challenges and even the panel installation methods are different. 'However, many matters need to be examined first, considering that the dams are sources of drinking water supply and are under the management of the Penang Water Supply Corporation. 'So, it requires approval and also more thorough study,' he told reporters after attending the Malaysian Photovoltaic Sustainable Energy Association Solar Roadshow 2025 here today. Zairil said the floating solar project would be important for the upcoming Silicon Island, with the area being actively developed and required renewable energy sources as an alternative energy supply. Therefore, he said, the state government would try to expedite the implementation of the project, especially to support development on the artificial island as the state's new green technology hub. 'It is really necessary for Silicon Island because the first area to be developed is the technology park. In two years, the factory will start operating, so we need renewable energy, especially solar.'
Barnama
2 hours ago
- Barnama
HKN 2025 Records Over RM1 Mln In Sales
MELAKA, July 29 (Bernama) -- The National Cooperative Day (HKN) 2025 celebration, held over three days from Friday to Sunday, recorded sales amounting to RM1,099,862.55. The Cooperative Commission of Malaysia (SKM) said the event, themed 'Cooperatives Empowering Communities, Building a MADANI Nation', also recorded potential sales of over RM21 million, reflecting a significant economic impact on the local cooperative ecosystem. It said the celebration drew 58,114 visitors, surpassing the initial target of 50,000, demonstrating strong public support for government initiatives to promote cooperatives through community-focused programmes, particularly for the B40 group.
