Forex Flash: Malaysian Central Bank to remain in wait-and-see mode - TD Securities (Barcelona) - Since the global and domestic economic conditions have barely been altered since the last Bank Negara Malaysia meeting, it justifies TD Securities Research Team view, which sees the BNM likely to keep the level of the Overnight Policy Rate unchanged at 3.00% on Thursday, in line with unanimous market consensus.

"Recent inflation figures were in line with the BNM forecasts, and should not be a concern. Central to the BNM’s policy are weak global growth and domestic demand which has so far remained relatively resilient to the global shocks. The fact that Bank Negara Malaysia rejected the temptation to cut rates over the past meetings suggests that the OPR at 3.00% is already sufficiently accommodative" notes TD Securities.

The risk on Thursday, according to TDS, "is that the benign inflation and the slow pace of growth in China and globally may induce the BNM to introduce further dovish wording, but likely not to an extent which would change our outlook." The Research Team at TDS concludes that the MPC "is likely to remain in wait-and-see mode over the foreseeable future, and the assessment of these two drivers will remain key to the BNM’s stance."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.