Investment banks predict Bank Negara Malaysia (BNM) will likely lower the Overnight Policy Rate (OPR) by 25 basis points in the second half of 2025 due to slower Q1 growth and potential tariff issues. Public Investment Bank Bhd suggests two 25 bps cuts if the 90-day tariff suspension isn't renewed, impacting trade and investment. Hong Leong Investment Bank and Standard Chartered also foresee a potential cut, with the latter predicting further reductions if economic data worsens. Standard Chartered lowered its 2025 GDP growth forecast to 4.2% due to these factors.
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