Bank Negara expected to maintain OPR at 1.75%

Published on 04 May 2021.

Share Tweet Email

RAM expects Bank Negara Malaysia (BNM) to hold the Overnight Policy Rate (OPR) at 1.75% at its next policy meeting on 6 May 2021. Strong export demand, the ongoing national vaccination programme and various supportive fiscal as well as monetary policies should keep up the pace of economic recovery for now. The present level of interest rates should be sufficient to sustain the current recovery momentum.

Recent data point towards a stronger-than-expected recovery for exports. The overall industrial production index rose 1.5% in February (2018-2019 average: +2.8%), underpinned by the manufacturing sector. While Malaysia’s domestic conditions are still tepid, the global revival has been spurring demand for our manufactured goods. This has in turn propped up Malaysia’s manufacturing output. Exports surged 31.0% in March (February: +17.6%), lifted by the manufacturing segment (March: +35.8%; February: +20.9%).

Sources: RAM and Department of Statistics Malaysia


Analytical contact
Nur Nadia Mazlan
(603) 3385 2513

Media contact
Padthma Subbiah
(603) 3385 2577


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2021 by RAM Rating Services Berhad