Malaysia: BNM could reduce rates by 25 bps – UOB

Economist at UOB Group Lee Sue Ann sees the Bank Negara Malaysia (BNM) cutting the policy rate by 25 bps at its meeting on Thursday.

Key Quotes

“Despite a cumulative 125 bps cut in the OPR year-to-date to a new low of 1.75%, another cut cannot be ruled out given official remarks regarding the pace of economic recovery, downside risks to growth and concerns over the impact on borrowers hwn the loan moratorium ends in September.”

“We have penciled in one more 25 bps rate cut at the September meeting, bringing OPR to 1.50% by year-end.”