MUFG’s Lloyd Chan notes that Bank Negara Malaysia (BNM) has maintained the overnight rate (OPR) at 2.75% and expects it to remain unchanged until 2026, with domestic fundamentals described as broadly favourable. The recent weakening of the Malaysian Ringgit (MYR) has remained below 4.15 against the US Dollar (USD), and Chan expects the USD/MYR to broadly remain in the range of 4.00-4.20 in the near future, while maintaining a neutral stance on Malaysian securities.
Ringgit was seen with a wide range
“In Malaysia, BNM left the overnight rate unchanged at 2.75% and maintained a broadly neutral policy stance.”
“We expect BNM to remain unchanged through the end of 2026 as current monetary settings continue to support economic growth while keeping inflation at manageable levels.”
“Domestic fundamentals remain broadly supportive, supported by a resilient labor market, solid investment approvals and contained inflation at around 2%.
“In the foreign exchange market, recent weakness in the ringgit has been limited below 4.15 against the dollar, helped in part by BNM’s actions to encourage government-linked companies to repatriate profits abroad.”
“We expect USD/MYR to remain broadly in the range of 4.00-4.20 for the foreseeable future.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor. Find out more.)
