Latest news with #MIDFAmanahInvestmentBank
The Sun
5 days ago
- Business
- The Sun
Malaysia's OPR cut to 2.75% unlikely to start rate-cutting cycle
KUALA LUMPUR: MIDF Amanah Investment Bank does not expect Bank Negara Malaysia's recent 25-basis-point cut in the Overnight Policy Rate (OPR) to signal the beginning of a near-term rate-cutting cycle. The bank highlighted resilient domestic spending and a stable labour market as key reasons for this outlook. 'We opine that a targeted support to assist specific industries will be a better approach moving forward instead of further OPR adjustments, at least for the rest of the year,' the investment bank said in a research note. RHB Investment Bank shared a similar view, projecting the OPR to remain at 2.75 per cent for the rest of 2025, provided Malaysia's GDP growth stays within the 4.0 to 5.0 per cent range. The bank described the July rate cut as pre-emptive, given strong domestic economic conditions. In contrast, OCBC Bank anticipates another 25-basis-point reduction in either September or November, citing manageable inflation despite subsidy adjustments. The bank noted that even if RON95 fuel subsidies are rationalised in October 2025, inflation would likely stay at a benign 2.0 per cent. CIMB Bank, meanwhile, said future rate cuts would depend on economic data, particularly trade and growth indicators. The bank pointed to Malaysia's improving labour market, with unemployment at 3.0 per cent, and controlled inflation as factors supporting policy flexibility. BNM's Monetary Policy Committee reduced the OPR to 2.75 per cent, adjusting the ceiling and floor rates to 3.0 per cent and 2.5 per cent, respectively. The central bank framed the move as a pre-emptive step to sustain growth amid moderate inflation. - Bernama
New Straits Times
6 days ago
- Business
- New Straits Times
Malaysia to remain competitive among Asean peers amid potential US tariff
KUALA LUMPUR: Malaysia remains competitive relative to its Asean peers despite the potential 10 per cent additional tariff imposed by the United States (US) on countries perceived to be aligned with BRICS, said MIDF Amanah Investment Bank. In a note today, MIDF said Asean peers such as Indonesia, Thailand and Vietnam — also BRICS partner countries — could face even higher combined tariff rates of 42 per cent, 46 per cent and 30 per cent, respectively. The new tariff, if implemented, could raise Malaysia's total tariff rate to 35 per cent, up from the current 25 per cent. "For Malaysia, a BRICS partner, the implication of this latest threat is speculative; after the negotiation, if Malaysia were to fall under the 10 per cent blanket tariff, this additional BRICS-related tariff could potentially raise its total tariff rate to 20 per cent. "However, at this juncture, this post is widely perceived as a threat rather than an imminent policy," MIDF said. US President Donald Trump, in a recent post on Truth Social, imposed an additional 10 per cent tariff on countries "aligning themselves with the anti-American policies of BRICS." He did not clarify what constitutes such an alignment. MIDF said the move may signal the US is still open to negotiations. "In Malaysia's case, the slightly higher tariff indicates that in the event Malaysia is unable to agree, that additional 10 per cent tariff will be enacted," it added. — BERNAMA
