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DBS expects Bank Negara Malaysia to hold its policy rate at 2.75%

DBS links its view to contained Malaysian inflation and estimated 2026 growth of near 5%, arguing there is little urgency to hike before the Sept. 3 decision.

Reported · Written up by our desk · Central Banks

DBS Group strategists Taimur Baig and Nathan Chow expect Bank Negara Malaysia to keep its Overnight Policy Rate unchanged at 2.75% on September 3.

They say the central bank should maintain the stance it adopted after its July 2025 insurance cut, pointing to contained inflation and robust 2026 growth near 5%.

The analysts argue there is little urgency for rate hikes, despite some market expectations for tightening ahead of the meeting.

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