Bank Negara Malaysia (BNM) is expected to increase the Overnight Policy Rate (OPR) to 3.25 percent.
OctaFX informed that the move was made to support the capital market and stabilize the US dollar exchange rate with the Malaysian ringgit.
The Fall Of RM Will Be Faster If OPR Remain Unchanged
The statement stated that if BNM remains the OPR unchanged, the fall of the ringgit is anticipated to occur at a faster pace, possibly reaching its highest level in several years, most probably will be 4.75.
OctaFX provided further clarification that the Monetary Policy Committee (MPC) mentioned that core inflation has been decreasing in recent months because of moderate cost influences, but they expect it to remain elevated due to sustained demand.
External factors are also one of the reasons impacting the domestic financial market. Investors are adopting a cautious approach due to concerns about the US Federal Reserve's potential interest rate increase.
