Although the overnight policy rate (OPR) is expected by many to stay at 3.0 percent, some economists see a possible 25 basis points (bps) cut by Bank Negara Malaysia as pre-emptive support against the potential downside risks of the American tariffs.

They believe that business sentiment has turned bearish despite Washington’s 90-day pause on the 24 percent import levy on Malaysia, with industries operated by both big and small companies being affected.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the expectation of the rate cut is...