Ahead of the Bank Negara Malaysia (BNM) Monetary Policy Committee meeting, experts predict the country's overnight policy rate (OPR) will be raised for the 3rd time in a row.
The basis was presented by the analyst agency, Moody's Analytics, saying another increase of 25 basis points will be made this week based on the jump in the Malaysian consumer price index (CPI).
Please be reminded that the national CPI reading jumped 4.4% in July, a full percentage point increase from the previous month, indicating that national inflation is rising even higher.
If BNM implements an increase of 25 basis points, the OPR will reach 2.5%, it is the 3rd consecutive increase made by BNM this year.
Moody's comments, the projection was also achieved based on the 2nd quarter gross domestic product (GDP) data which was unexpected as a result of increased demand for services.
Explaining more about the forecast set, the increase in the OPR can support the value of the ringgit (RM) after it has weakened due to the strengthening of the dollar while the Federal Reserve (Fed) continues to act aggressively in setting its policy.
As information, the Monetary Policy Committee (BNM) meeting will take place from 7 to 8 September.
