That’s it for OPR cuts, says HSBC That’s it for OPR cuts, says HSBC
Share this on WhatsAppOther than a possible additional 25-basis-point (bps) cut expected at the end of the year, there is limited scope for further... That’s it for OPR cuts, says HSBC

Other than a possible additional 25-basis-point (bps) cut expected at the end of the year, there is limited scope for further Overnight Policy Rate (OPR) cuts beyond that, says HSBC Global Research.

The research house pointed out that the market may have been hoping for more rate cuts down the line, but despite low inflation providing further room for easing, it said overly aggressive cuts could result in capital outflows, which Bank Negara Malaysia might find challenging to counter with its thin foreign exchange reserves.

HSBC economist Su Sian Lim said while Malaysia has witnessed three consecutive quarters of capital inflows since the fourth quarter of 2015, with the uncertainty surrounding the global economy, higher risk aversion among investors is a possibility.

She also said the government won’t be able to afford any meaningful fiscal stimulus, as government revenue has not met targets, while expenditure has exceeded expectations.

Property 360 Online

Property 360 Online is a news portal focused on major issues, views and major market movements in the Malaysian real estate sector.

Shares