Bank Negara Malaysia: New year surprise rate cut - ANZ

Dhwani Mehta FXStreet

Australia and New Zealand Banking Group (ANZ) analysts express their take on the Malaysian Central Bank’s surprise rate cut announcement earlier on Wednesday, in an effort to safeguard growth.

Key Quotes:

“Bank Negara Malaysia (BNM) cut its Overnight Policy Rate (OPR) by 25bps to 2.75% today. The cut, which was against the consensus view, has brought the OPR to its lowest level since 2011.

Despite sounding more upbeat on both global and domestic growth prospects, BNM cut the policy rate as a “pre-emptive measure to secure the improving growth trajectory”.

Given the front-loaded cut today, we expect no further changes to the policy rate in 2020.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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