“We believe there could be one more OPR hike by end-2023 to 3.25%. “Regardless, we maintain our forecast trajectory for monetary policy with end-2023 OPR at 3.25%, implying another (hike of) 25bps in 2H2023,” said the economists. “Bank Negara justified the current rate hike, as there are ‘no signs of excessive tightening affecting consumption and investment activities’. One of the key reasons that Bank Negara paused rate hikes in January was to assess the cumulative OPR adjustments,” Nazmi and Mas Aida explained. Read also:BNM makes surprise 25bps hike in OPR to 3%Local banks announce new interest rates after BNM hikes OPR again

Source: The Edge Markets May 04, 2023 15:50 UTC