• BNM cuts OPR by 25bps to 2.50%

• BNM cuts OPR as Covid-19 weakens global economy

• Dovish monetary policy statement

• Further OPR cut if Covid-19 outbreak prolonged and worsened

Bank Negara Malaysia’s Monetary Policy Committee (MPC) decided to cut the Overnight Policy Rate (OPR) by another 25bps to 2.5% as the Covid-19 outbreak has taken a toll on the economy. The ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2.75% and 2.25%, respectively. At 2.5%, it is the lowest level since May 2010.

In the Monetary Policy Statement (MPS), BNM said the reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability.

Source: BIMB Securities Research - 3 Mar 2020