Thursday, March 8, 2018

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

 

 

 

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