Bank Negara Malaysia Likely to Hold OPR at 2.75% This Week, But Hike Possible by Year-End – Juwai IQI

KUALA LUMPUR: Bank Negara Malaysia (BNM) is expected to maintain the Overnight Policy Rate (OPR) unchanged at 2.75% during its Monetary Policy Committee (MPC) meeting on Thursday, according to international real estate technology group Juwai IQI. However, the group warns of a potential rate hike later this year as economic conditions evolve.

Juwai IQI Co-Founder and Group Chief Executive Officer Kashif Ansari stated that BNM is likely to prioritise stability in the near term amid resilient domestic growth and low inflation, despite global uncertainties. Malaysia’s economy is projected to expand by around 4.5% this year, providing policymakers with flexibility to remain patient.

“Malaysia is in an exceptionally strong position. Growth is expected at about 4.5 per cent this year while inflation remains low, giving policymakers room to stay patient despite global uncertainty,” Ansari said.

He noted steady property market activity in key areas such as Greater Kuala Lumpur, Johor Bahru, and Penang, with disciplined developers, healthy loan approvals, and moderating household debt growth. These factors support a stable policy stance for now.

Nevertheless, Juwai IQI highlighted risks that could prompt BNM to raise the OPR towards the end of 2026. External pressures, including potential tariff changes and other international uncertainties, may influence future decisions, shifting focus toward domestic inflation and growth indicators.

The property sector is expected to benefit from sustained confidence under stable interest rates, with no signs of overheating or significant oversupply in the market.

This outlook comes as BNM prepares for its upcoming MPC announcement, with many analysts aligning on a hold decision in the short term while monitoring conditions for possible tightening later in the year.