Bank Negara Malaysia (BNM) can afford to be more gradual in increasing the overnight policy rate (OPR) after raising the interest rate by 25 basis points to three per cent following its Monetary Policy Committee (MPC) meeting in May, said an economist.

UOB Group’s senior economist, Julia Goh, said that at three per cent, the OPR was neutral, which is not too restrictive and sufficient to handle inflationary risk...