Bank Negara Malaysia likely to keep OPR at 3%—OctaFX

OctaFX analyses the likelihood of BNM keeping the Overnight Policy Rate (OPR) unchanged at 3% at the upcoming Monetary Policy Committee meeting on September 6-7. Learn about the potential impact on the Malaysian ringgit.

  • Headline inflation in Malaysia declined to 2% in July, according to the Monetary and Financial Developments by Bank Negara Malaysia (BNM).
  • The domestic financial market and the ringgit exchange rate were driven primarily by expectations that the US Federal Reserve's monetary tightening cycle was nearing an end.
  • The Overnight Policy Rate (OPR) is unlikely to be raised at the next meeting, as the Malaysian economy is growing steadily.
  • If the Monetary Policy Committee leaves the rate unchanged, USDMYR could hit 4.5000–4.5500.

KUALA LUMPUR, MALAYSIA - Media OutReach - 4 September 2023 - The Monetary Policy Committee (MPC) of the Bank Negara Malaysia (BNM) will meet on 6-7 September to decide on monetary policy.

OctaFX (1).jpg

According to the BNM's report on Monetary and Financial Developments in July 2023, headline inflation in Malaysia continued to decline, reaching 2% in July. This decrease was driven by lower core inflation, attributed mainly to lower inflation for food away from home and selected discretionary services.

The latest report from BNM also predicts that Malaysia's economy will grow towards the lower end of the 4% to 5% range in 2023, driven primarily by domestic demand.

The performance of the domestic financial market was largely influenced by expectations that the US Federal Reserve's monetary tightening cycle was nearing an end. As a result, the ringgit appreciated by 3.1% against the US dollar in July. However, this growth was offset in August, and currently, the USDMYR is testing a two-month high of 4.6300–4.7000.

‘BNM cannot ignore the decline in inflation’, said Kar Yong Ang, the OctaFX financial market analyst. ‘With the Malaysian economy growing steadily and the likelihood of a pause in the US Federal Reserve's key rate hike, the Overnight Policy Rate (OPR) is unlikely to be raised at the next meeting’, he added.

Considering the current level of the OPR, the market policy is expected to be accommodating and supportive of the economy. This move aims to support capital markets and stabilise the USDMYR exchange rate, which is anticipated to trend lower (and the ringgit appreciating) with a target range of 4.5000–4.5500.

Hashtag: #BNM #interestrate #MYR #USD

Penerbit bertanggung jawab penuh atas isi pengumuman ini
About OctaFX
About OctaFX
is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries who have opened more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, OctaFX captured the ‘Best Forex Broker Malaysia 2022’ and the ‘Best Global Broker Asia 2022’ awards from Global Banking and Finance Review and International Business Magazine, respectively.






Simplified Chinese, Malay


05 Sep 2023

Siaran Pers Sebelumnya


Talk to Media OutReach Newswire today