'Waiting for the results of the OPR is the same as waiting for the results of the SPM.'
On 2 and 3 November 2022, Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) will hold its 6th meeting and subsequently implement its last overnight policy rate for the year.
For now the country's OPR is revised at 2.50% with an inflation rate of 4.4% as of July 2022 while the gross domestic product (GDP) growth for the 2nd quarter is at 8.9%.
Following that, several market analysts were seen releasing their projections and views on the implementation of the OPR as well as the economic outlook by 2023.
Maybank Investment Bank Bhd (Maybank IB)
The banking firm forecast another 25 basis point hike will be made at the next MPC meeting, taking the overall rate to 2.75%.
According to the published note, BNM is expected to want to bring the OPR to the pre-Covid-19 level of 3% in an effort to ensure a 4% rate in 2023.
The projection is set after taking into account the continued surge in the inflation rate, labor market recovery and strong GDP growth for the 3rd quarter of 2022.
CGS-CIMB
This financial company also voiced the same view by predicting the country's OPR will be raised at 2.75% and revised to 3% in 2023.
To support the matter, the company underlined the weakness in the value of the ringgit against the dollar will be the main reason for the increase of another 25 basis points by BNM.
Also underlined is that the inflation rate is expected to moderate based on the decline in global commodity prices including government intervention in food products such as chicken and petrol.
Hong Leong Investment Bank Bhd (HLIB)
This brokerage institution issued a different view by projecting that the national OPR will be maintained at 2.5% at the November meeting.
