DBS analysts project no change to Malaysia's 2.75% benchmark rate, citing strong economic performance and effective fuel subsidy management as key factors for a steady policy stance.
DBS expects Bank Negara Malaysia to keep the OPR at 2.75%, with contained inflation and strong growth, which is neutral for the Malaysian ringgit.
DBS Group Research forecasts that Bank Negara Malaysia will maintain its Overnight Policy Rate at 2.75% during the final meeting of 2026. Analysts cite stable inflation within the 1.5-2.5% target range and robust GDP growth as primary drivers for delaying monetary policy normalization until the first half of 2027.
DBS research suggests that contained inflation, strong GDP growth, and the impact of fuel subsidies on cost pass-through provide the central bank with room to delay rate hikes until 2027.