Bank Negara unlikely to increase OPR

Bank Negara Malaysia (BNM) is unlikely to increase the Overnight Policy Rate (OPR) in its latest Monetary Policy Committee (MPC) meeting today.

“I don’t think Bank Negara will increase its OPR based on the current macroeconomic situation. The US economy is relatively good. But looking at China’s export data, I think the market and the world is a bit concerned if China will continue to face negative impacts on their economy.

“In that environment, I believe Bank Negara will likely remain its accommodative policy,” said Phillip Capital Chief Strategist, Phua Lee Kerk when contacted by Astro AWANI today.

OPR remained unchanged for the past nine meetings after it was increased to 3.25 per cent in September 2014 from 3 per cent previously.

In a different development, the heated discussions in the financial industry is the departure of Bank Negara Malaysia's governor, Tan Sri Dr Zeti Akhtar Aziz.

According to Bloomberg, the meeting held at the Central Bank was Zeti's last meeting after 16 years leading the central bank.

Who will be Zeti's successor remains to be determined, said Phua.

“The market is still waiting for the announcement by the government to reveal who will succeed her," he said, adding that industry players are keen to know the traits of Zeti's successor to assist them in gauging the climate of the banking industry in the future.

“After today’s meeting, the government may give some indications who will be the next governor," Phua added.

Bloomberg reported that candidates for the new governor will be chosen by the Governance Committee under Bank Negara before being selected by the government and presented to the Yang di-Pertuan Agong for his consent.

Among the candidates listed by Bloomberg are Secretary-General of Treasury Tan Sri Dr Mohd Irwan Serigar Abdullah, Malaysian Ambassador to the United States Datuk Awang Adek Hussin and Minister at Prime Minister Department Datuk Seri Abdul Wahid Omar.

Apart from that, the three current deputy governors are also included on the list.

In a different development, the heated discussions in the financial industry is the departure of Bank Negara Malaysia's governor, Tan Sri Dr Zeti Akhtar Aziz.

According to Bloomberg, the meeting held at the Central Bank was Zeti's last meeting after 16 years leading the central bank.

Who will be Zeti's successor remains to be determined, said Phua.

“The market is still waiting for the announcement by the government to reveal who will succeed her," he said, adding that industry players are keen to know the traits of Zeti's successor to assist them in gauging the climate of the banking industry in the future.

“After today’s meeting, the government may give some indications who will be the next governor," Phua added.