Room for Bank Negara Malaysia to Make Rate Cut in Early September: Malaysian Economists

September 01, 2020

Malaysia is likely to see its interest rate cut again, as Bank Negara Malaysia (BNM) is anticipated to make one final 25 basis point (bps) cut in the country’s overnight policy rate (OPR) as early as September 2020, according to economists, bringing the benchmark used by financial institutions to set lending rates to a record low of 1.5% from the current 1.75%.

BNM’s Monetary Policy Committee is scheduled to meet and decide on the OPR on the 10th of September 2020. So far, Malaysia’s OPR has been slashed four times this year by a total 125 bps to complement strong fiscal measures to mitigate the economic impact of the COVID-19 pandemic, according to local media reports.