Delivers a pre-emptive 25 bps cut, a tactical cut to guard against global shocks
Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) lowered the Overnight Policy Rate (OPR) by 25 basis points to 2.75% at its fourth meeting of the year. While the decision matched consensus expectations, it came earlier than we had projected, underscoring BNM’s growing concern over intensifying external risks. Importantly, the cut should not be read as a shift in the domestic macro narrative, which remains fundamentally resilient.
Policy statement: The MPC described the move as “a preemptive measure aimed at preserving Malaysia’s steady growth path amid moderate inflation prospects.” The language is telling—BNM is not reacting to current weakness, but instead positioning policy to stay ahead of potential disruptions stemming from global headwinds.
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