[Breaking] Bank Negara Malaysia Keeps Interest Rate Unchanged

Bank Negara Malaysia (BNM) announced today to maintain the Overnight Policy Rate (OPR) at 3.00%, the fourth consecutive hold, in line with market expectations.

BNM stated that the current monetary policy stance remains appropriate to support economic growth while maintaining price stability.

Key points: 1. Inflationary pressures have eased, with core inflation falling to 2.8% 2. Economic growth remains resilient, with full-year GDP growth expected at 4.5% 3. The labor market remains stable, with unemployment rate at 3.4%

Analysts generally believe that BNM will follow the Fed in cutting rates in the first half of next year. The first rate cut is expected in Q2 next year, when OPR may be lowered to 2.75%.

For investors, the unchanged rate means bank stocks' net interest margins will remain stable, while REITs may continue to be favored.