KUALA LUMPUR: A potential 25-basis-point hike in the Overnight Policy Rate (OPR) to 3.0 per cent is expected in the first quarter of 2027 (1Q 2027), amid resilient economic growth and Bank Negara Malaysia’s (BNM) hawkish stance on inflation, said market observers.
Kenanga Investment Bank Bhd expects BNM to deliver a single 25-basis-point hike to 3.0 per cent in 1Q 2027 before keeping the rate unchanged.
The investment bank said that with most major central banks tightening monetary policy, an unchanged OPR risked widening interest rate differentials, adding pressure on the ringgit, while a modest pickup in inflation in 2027 would erode the real OPR.
It added that inflation remained benign at 1.8 per cent in September, but persistent geopolitical tensions warranted a measured shift towards more neutral monetary policy settings.
