Bank Negara Malaysia (BNM) is expected to tighten the Overnight Policy Rate (OPR) by another 25 basis points on November 3, a Reuters poll suggests.
Here’s what it means for the Malaysian ringgit (and our economy). 🧵
1. The hike will increase the OPR from 2.50% to 2.75%.
This is the fourth consecutive 25 basis point increase this year.
Economists believe that sticky inflation and our weakening local currency are the main reasons for BNM to tighten credit conditions.
2. Although inflation fell slightly in September, from 4.7% to 4.5%, domestic demand remains strong, and our core inflation (excluding volatile items like food and fuel) has been hotter than expected.