Malaysian Ringgit Rises on BNM's Hawkish Stance

Bank Negara Malaysia (BNM) maintained its Overnight Policy Rate (OPR) at 2.75%, but its latest statement revealed a more hawkish stance, sparking support for the Malaysian Ringgit.

The central bank's shift in tone is attributed to stronger-than-expected growth and concerns that global commodity price increases may feed into domestic prices and wages.

Despite low inflation and government fuel subsidies cushioning the energy-price shock, BNM appears to be preparing the market for a possible rate hike later this year or early 2027.

GDP expanded 6.0% year-over-year in Q2 and 5.7% in H1, supported by exports, particularly technology-related demand, alongside resilient household spending and investment.