KUALA LUMPUR (May 15): RHB Research Institute Sdn Bhd said Bank Negara Malaysia (BNM) is likely to maintain its overnight policy rate (OPR) at 3% in 2017 after Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) kept the overnight policy rate (OPR) unchanged at 3% for its fifth straight meeting on May 12 May.

In an economiuc update today, the research house said it expects BNM to maintain the OPR at the current level of 3% in 2017 on account of:

1.   Expectations of sustained economic growth;

2.   Ringgit still weak despite recent strength;

3.   Downside risks to global growth persist; and

4.   Higher inflationary pressures.

“Although inflationary pressure has increased, it is mainly cost-push in nature.

“Thus, it does not warrant a tightening of the monetary policy by the Central Bank,” it said.