Bank Negara Malaysia expected to pause through 2025 after July cut

Published 14/07/2025, 10:44
Bank Negara Malaysia expected to pause through 2025 after July cut

Investing.com - Malaysia’s central bank cut interest rates by 25 basis points on July 9, aligning with market expectations.

Bank Negara Malaysia (BNM) implemented the rate reduction while indicating it would consider "further measured moves" only if necessary, according to BofA analysis.

Financial markets are currently pricing in no additional rate changes from the Malaysian central bank for the remainder of 2024.

BofA economist Kai Wei Ang forecasts that BNM will likely maintain an extended pause in its monetary policy following this cut.

The bank may consider another rate reduction in the first half of 2026, but only if Malaysia’s GDP growth for that year is projected to fall below 4%, according to BofA’s analysis.

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