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Potential winners, losers from OPR hike

Bank Negara Malaysia (BNM) on Wednesday (July 6) raised its overnight policy rate (OPR) by 25 basis points (bps) to 2.25%. This is the second successive rate hike this year. The decision was widely expected by 17 out of 19 economists surveyed by Bloomberg, including us. We expect BNM to make another 25bps hike in its Monetary Policy Committee meeting in September, and stand pat in the November meeting, ending the year with an OPR of 2.50%. For next year, we price in 50bps in rate hikes, putting the end-2023 OPR at 3.0%. ....

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