FW: RHB | Malaysia | BNM Pauses After January Hike

 

 

 

Economic Research			7 March 2018
Malaysia
Economic Update
BNM Pauses After January Hike   Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) maintained the overnight policy rate (OPR) at 3.25% today. After a 25 bps hike in January, the central bank did not follow-through with another rate hike this time as it sees the current degree of monetary accommodativeness to be consistent with the its policy stance – to ensure that the domestic economy continues on a steady growth path amid lower inflation. Looking forward, we believe that BNM would pen in another rate hike of 25 bps this year to 3.5%, likely in 2H18 given: 1.   The strong run of economic performance enjoyed by the country; 2.   Inflation staying elevated at 3% (RHB estimate) amid rising trend in commodity prices; and 3.   The rising external pressures from the monetary tightening of major global central banks including in the US, Europe and selected Asian countries;   Economists: Vincent Loo Yeong Hong  | +603 9280 2172
To access our recent reports please click on the links below:   01 Mar: M3 Growth Remains In Low Gear 28 Feb: Inflation Normalises In Early 2018 21 Feb : Exports Growth To Remain Healthy After Surging In 2017 15 Feb : Current Account Surplus To Narrow In 2018 14 Feb : 2017 GDP Growth Strongest In Three Years 12 Feb : 4Q17 Economic Activity Remains Healthy Despite Slowdown
Economics Team
Arup Raha	Group Chief Economist	arup.raha@rhbgroup.com		+65 6232 3896
Peck Boon Soon	Chief ASEAN Economist	bspeck@rhbgroup.com		+603 9280 2163
Vincent Loo Yeong Hong	Malaysia, Vietnam,	vincent.loo@rhgroup.com		+603 9280 2172
Rizki Fajar	Indonesia, Philippines	rizki.fajar@rhbgroup.com		+6221 2970 7065
Aris Nazman Maslan	Malaysia, Vietnam	mohd.aris.nazman@rhbgroup.com		+603 9280 2184