Keep holding on...
This is predicated on a further downtrend in headline and core inflation to below 3% and an expected global economic slowdown amid tighter financial conditions, which could weigh on domestic growth over the next year.
“However, we reckon there is still room for the central bank to adjust the policy rate, probably with another 25-basis-point hike to 3%, should an unexpected shock to global commodity prices or global financial markets, as well as changes to local subsidy policy, lead to a resurgence in domestic inflationary pressures,” it said in a note yesterday.
“Despite multiple potential risks to the global economy, we believe these factors will positively impact Malaysia’s current account balance,” it said. It said the strengthening of the yuan amid China’s potential robust post-reopening recovery may also help to bolster the ringgit due to its strong positive correlation.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Guan Eng urges Bank Negara to stop OPR hikes | The Malaysian InsightInstitution must align its policies with the govt's, says ex-finance minister.
Read more »
Malaysia's banking system remained well-capitalised in 2H22 - Bank NegaraKUALA LUMPUR: The banking system remained well-capitalised throughout the second half of 2022 (2H 2022), bolstering the bank’s capacity to support lending activity and absorb unexpected losses.
Read more »
Headline, core inflation to average between 2.8% and 3.8% in 2023 - Bank NegaraKUALA LUMPUR: Despite moderating in the fourth quarter (4Q) of 2022, headline inflation is expected to remain elevated in 2023, said Bank Negara Malaysia (BNM).
Read more »
Insurance, takaful sector to remain resilient on strong capital, liquidity positions - Bank NegaraKUALA LUMPUR: The insurance and takaful sector is expected to remain resilient, supported by strong capital and liquidity positions.
Read more »
Housing market continues to be robust in 2H 2022 - Bank NegaraKUALA LUMPUR: Activity in the housing market continued to be robust in the second half (2H) of 2022, following the resumption of economic activities and improved employment conditions, said Bank Negara Malaysia (BNM).
Read more »