Malaysian Ringgit: Stable policy underpins growth narrative – BNY
Geoff Yu notes that Bank Negara Malaysia kept its policy rate at 2.75%, judging the stance consistent with price stability and sustainable growth. The bank sees Malaysia’s economy on track for around 5% growth this year, with low inflation and limited external cost pass-through. However, it highlights Middle East tensions, elevated commodity prices and tighter global financial conditions as risks to the broader growth and inflation outlook.
BNM holds rates, monitors risks
"Bank Negara Malaysia has kept its overnight policy rate unchanged at 2.75%, judging the current stance to be consistent with continued price stability and sustainable growth."
"It said Malaysia’s economy expanded by 5.7% in H1 and is on track to grow around 5% this year, supported by stronger exports, resilient domestic demand, technology-related trade, tourism and investment."
"Headline and core inflation averaged 1.8% and 2.0%, respectively, in the first seven months, with limited pass-through from higher external costs."
"However, the MPC warned that Middle East tensions, elevated commodity prices and tighter global financial conditions remain key risks."
"Policy therefore remains on hold, with officials closely monitoring inflation pressures and domestic demand."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ooma CFO Shigeyuki Hamamatsu disposes of 7,888 common shares worth $175,206.71
IGM Financial reports August AUM&A of $346.1 billion
Spot gold tests the 4,500 mark as Fed rate hike bets cool after Waller’s speech

2-Yr Benchmark Govt Yields - Germany vs Other Nations
