Investment Banks Expect OPR To Remain At 3.00 Pct Throughout 2025

KUALA LUMPUR, Feb 21 (Bernama) --Investment banks expect Malaysia’s Overnight Policy Rate (OPR) to remain stable at 3.00 per cent in 2025.

In a note today, MIDF Amanah Investment Bank Bhd said that it continues to project the OPR remaining at its current level of 3.00 per cent throughout 2025, based on the absence of significant demand-driven inflationary pressures and our assessment that the prevailing rate supports Malaysia’s economic growth trajectory.

“Malaysia’s headline inflation stayed at 1.7 per cent year-on-year (y-o-y) in Jan-2025, within our estimated range, amid a moderation in food inflation to 2.5 per cent y-o-y (December 2024: 2.7 per cent y-o-y), as food inflation slightly slowed from the 14-month high recorded in the previous month,” it said.

Meanwhile, CIMB Investment Bank Bhd reiterated its expectations of an extended OPR pause at 3.00 per cent, with the inflation rate projected to average 2.6 per cent in 2025.

“Core inflation inched up to 1.8 per cent in January (December 2024: 1.6 per cent), while headline inflation held at 1.7 per cent, despite an earlier Chinese New Year. 

“Higher labour and transportation costs are likely to remain benign, with inflation remaining within the official target of 2.0 to 3.5 per cent this year, supporting an extended OPR pause at 3.00 per cent throughout 2025,” it added.

-- BERNAMA