OPR Expected To Remain At 2.75 Pct At Tomorrow's MPC Meeting -- Standard Chartered

KUALA LUMPUR, March 4 (Bernama) -- Bank Negara Malaysia (BNM) is expected to keep the overnight policy rate (OPR) at 2.75 per cent when the Monetary Policy Committee (MPC) meets tomorrow, according to Standard Chartered Bank.

In a research note today, Standard Chartered said the January 2026 monetary policy statement indicated that BNM remains comfortable to keep the OPR on hold, with no hawkish signals suggesting a near-term reversal of the pre-emptive rate cut delivered in July 2025.

The MPC had maintained the OPR at 2.75 per cent at the November 2025 and January 2026 MPC meetings.

“Malaysia's fourth quarter (4Q) 2025 gross domestic product (GDP) growth was revised up to 6.3 per cent year-on-year (y-o-y) from 5.7 per cent. This lifted full-year 2025 GDP growth to 5.2 per cent, exceeding expectations.

"The stronger growth outcome could raise questions about whether BNM may unwind its July 2025 rate cut,” Standard Chartered said.

For background, BNM had cut the OPR by 25 basis points to 2.75 per cent at the MPC meeting on July 9, 2025.

"Subdued inflation and ongoing external uncertainties could keep the central bank on hold as it evaluates growth trends in the coming quarters.

“We will watch for tweaks to the forward guidance paragraph, in particular BNM’s characterisation of its monetary policy stance, which in January 2026 was ‘appropriate and supportive’.

"With Middle East geopolitical risks on the rise, we would now also watch for clues to whether BNM’s bias skews towards growth support or inflation vigilance," the research note said.

It also added that BNM, in an accompanying 4Q GDP release, had stressed that inflationary pressures had become less broad-based during the quarter under review.

-- BERNAMA