No change expected to OPR for next 12 to 15 months

THERE is likely no change to the overnight policy rate (OPR) with Bank Negara Malaysia expected to maintain it for the next 12 to 15 months, said Kenanga Investment Bank Bhd (Kenanga).

This follows subdued inflation pressures and a stable economic outlook, reported Bernama.

However, fiscal policy shifts and external risks, such as geopolitical tensions, could still influence the central bank's stance, Kenanga said in a research note today.

Meanwhile, Bernama also reported that the investment bank revised its year-end forecast for the ringgit versus the US dollar to 4.25 from 4.42 previously.

This was premised on Malaysia's favourable yield differentials, the United States (US) Federal Reserve's  (Fed) interest rate cuts, and China's economic recovery.

"As anticipated, the market has adjusted its expectations, now only pricing in two 25 basis point cuts by the Fed this year, following stronger-than-expected US September labour data.

"While domestic fundamentals should continue to underpin the ringgit, we remain vigilant of external risks, particularly the prospect of a sharper US economic downturn, election-related uncertainties, and geopolitical tensions," said Kenanga.

Average home rent in Malaysia is RM1,995, up 3.9%

Bernama also reported that the average rent in Malaysia rose 3.9 per cent to RM1,995 in the second quarter (2Q 2024) compared to 1Q 2024, and 2.9 per cent from 2Q 2023.

This was according to the IQI Malaysia Home Rental Index report for 2Q 2024, released by Juwai IQI.

Juwai IQI co-founder and group chief executive officer Kashif Ansari said for the first time in a year, the annual growth rate has accelerated rather than slowed.

He said the Malaysia Home Rental Index moves with the flow of rental property supply and demand, seasonal shifts, the influx of international students, and investor activity.

"Our earlier forecast was that rental rates would climb moderately from zero per cent to three per cent, but the index has already increased by 3.9 per cent, more quickly than expected.

"We now update our forecast and project the Home Rental Index to increase at an annual rate of 5.5 per cent by 1Q 2025," he said in a statement.

In Kuala Lumpur, rents are 44 per cent higher than the national average, with a 51 per cent premium over Selangor's average rent.

Selangor's rents remained largely stable, increasing by just one per cent. - October 8, 2024