Malaysia: BNM is seen keeping rates unchanged this week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank Negara Malaysia (BNM) would likely maintain its policy rate intact at 3.00% at its meeting later in the week.

Key Takeaways

Both the latest inflation reading and slower-than-expected real GDP growth for 2Q23 reinforces our view for the OPR to be kept unchanged at 3.00% for the rest of the year.

Increasing uncertainties from the external front alongside a persistent labour market slack and year-ago high base effects have posed more challenges to Malaysia to sustain its growth momentum in the coming quarters, limiting room for BNM to further tighten its monetary policy.