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MNI BNM Preview - September 2021: Bank Negara To Leave OPR Unchanged

Executive Summary

  • Bank Negara Malaysia are set to leave the Overnight Policy Rate unchanged at 1.75% for the seventh time in a row. Virtually all sell-side analysts expect a stand-pat scenario.
  • The recent deceleration in consumer-price inflation has been driven by the government's relief measures, due to expire at the end of the month, while softer GDP outlook was likely already taken into consideration at the previous meeting.
  • While Covid-19 cases remain elevated, Malaysia's vaccine rollout is progressing well, with nearly half of the population fully inoculated. This bodes well for recovery prospects, reducing pressure on the central bank to add stimulus.

Click to view the full preview: MNI BNM Preview September 2021.pdf

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