Lee Sue Ann, Economist at UOB Group, suggests the Bank Negara Malaysia (BNM) could leave the key rate unchanged at its meeting on May 6.
“The resurgence in COVID-19 infections and re-tightening of selective containment measures in the country in April reinforce labour market slack and bumpy economic recovery in 2Q21.”
“Underlying inflation remains muted with core inflation staying below 1.0% level for six months.”
“As such, we expect BNM to keep interest rates on hold while continuing to monitor developments of the pandemic and coordinate with the government on a mor targeted fiscal approach.”
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