Kenanga Raises Loan Growth Forecast To 5.5-6.0 Pct, Expects OPR To Stay At 2.75 Pct

KUALA LUMPUR, Nov 2 (Bernama) -- Kenanga Investment Bank Bhd has raised its loan growth forecast for this year to a range of 5.5 per cent to six per cent from five per cent to 5.5 per cent, with projections extended into 2027.

The investment bank said loan demand stayed resilient in the third quarter of this year (3Q 2026), backed by domestic demand, ongoing investment projects and infrastructure spending.

“In 4Q 2026, external headwinds, rising business costs and softer global growth may temper corporate borrowing. Still, we expect healthy household spending and continued investment momentum to keep credit growth within our target range,” it said in a research note today.

On the overnight policy rate (OPR) outlook, Kenanga said it expected Bank Negara Malaysia (BNM) to keep the OPR at 2.75 per cent at its November Monetary Policy Committee meeting.

“Inflation remains broadly contained despite stronger-than-expected growth and elevated energy prices, with limited second-round effects so far,” it said.

Kenanga said inflation may edge higher in the coming months, but increases should stay gradual and not be broad-based.

Meanwhile, banking system liquidity remains ample, despite the liquidity coverage ratio easing to a six-month low of 144.8 per cent in September (August: 145.9 per cent), suggesting no immediate funding or liquidity pressures.

“With spare capacity in the economy and growth support still its priority, BNM is in no rush to adjust policy,” it added.

-- BERNAMA