MAYBANK expects another cut in the Overnight Policy Rate (OPR)  in anticipation of slower global growth.

Group president and chief executive officer Farid Alias said today the rate cut,  likely 25 basis points, is one of many tools in the financial system to respond to any slowdown in the global economy.

In May, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) reduced the OPR by 25 basis points to 3%. It was the first cut since July 2016.

The MPC will meet again in September and November.

Uncertainty in the external environment is expected to remain, impacting all markets including Malaysia, Farid told a press conference in Kuala Lumpur after announcing Maybank’s financial results today.

“We see in the United States (its Federal Reserve) cut rates (and) because of that, many economies around the world are anticipating the state of the (global) economy (to be slower). 

“That (rate cut) will be good as it helps (the economy by) putting more cash in hands of borrowers which will then have a positive impact on private consumption,” he said.

On the back of lower loan yields amid the OPR cut in May and possibly another, Farid said Maybank expects its net interest margin (NIM) to be flat for the financial year ending December 31, 2019.

In the first half of this year, Maybank’s NIM was nine basis points lower at 2.24%, mainly the result of a drop in base lending rates following the revision in the OPR during the period. – Bernama, August 29, 2019.