Malaysia keeps rates unchanged at 3.00% - UOB


Economists Julia Goh and Loke Siew Ting at UOB Group assessed the recent decision by the BNM to hold rates at 3.00%.

Key Quotes

Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) on hold at 3.00% today. The statutory reserve requirement ratio (SRR) was kept unchanged at 3.50%. This came in line with ours and market consensus”.

“BNM kept a neutral tone suggesting no further rate cuts for now. Malaysia’s strong growth of 4.7% y/y in 1H 2019 was underpinned by resilient private spending and broad-based expansion across major sectors. Despite expectations of higher average inflation in the remaining months of the year and into 2020, underlying inflation is expected to remain stable. BNM maintained its baseline growth projection at 4.3% - 4.8% for 2019, subject to downside risks from global uncertainties, worsening trade tensions, and commodity weakness”.

“We maintain our year-end target for the OPR at 3.00%, implying no further cuts this year. This is premised on a stable growth trajectory in 2H 2019 and assumes that a protracted negotiation between US and China will produce some resolution but existing tariffs may not be removed… Over the near term, we expect USD/MYR to trade alongside Asia FX, in line with the developments of the US-China trade talks. Key event risk to watch for is FTSE Russell’s decision whether to exclude Malaysia from its World Government Bond Index (WGBI) on 26 Sep.”.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Forex MAJORS

Cryptocurrencies

Signatures