KUALA LUMPUR (Nov 19): Bank Negara Malaysia will likely keep its overnight policy rate (OPR) unchanged at 3.25% until the first half of next year, said Aberdeen Islamic Asset Management Sdn Bhd.
"I don't think the (Malaysian economy's) growth will be very strong next year," its assistant investment manager Edmund Goh told a media briefing on the company's 2015 market outlook dubbed "Search for Value" today.
This is due to lower domestic consumption expected in 2015 following the petrol hikes and the upcoming implementation of the Goods and Services Tax.
"On that front, we don't think it is going to support the economy's growth from the consumption side," said Goh.
He noted that the central bank had raised the OPR in July this year as bank deposits decline.
"But if you look back in the past six months, banks have increased their interest rates respectively. Instead of correcting the fiscal imbalances, the banking industry is doing the job," he said.