KUALA LUMPUR, July 13 — The new Bank Negara governor Datuk Nor Shamsiah Mohd Yunus is already reshuffling the roles of senior officers in the central bank, less than two weeks into holding office. According to an online report by The Star, there…
PETALING JAYA: Analysts expect Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 3.25% for the rest of the year despite the dovish tone of the latest Monetary Policy Statement (MPS).
Kenanga Research does not expect BNM to make any changes to its monetary stance based on the central bank's “less cheery” assessment on the economic prospect as well as a benign inflation outlook.
“Though BNM appears to be dovish, we reiterate our view that the OPR will remain on hold until the end of the year. Moreover, BNM has stated that despite the heightened financial market volatility, the domestic monetary and financial conditions remain supportive of economic growth,” it said in its report yesterday.
On Wednesday, the Monetary Policy Committee (MPC) maintained the OPR at 3.25% and the statutory reserve requirement (SRR) rate at 3.50%.
In its statement, the MPC said the balance of risks to the outlook has tilted to the downside, and that the intensification of global trade tensions could affect sentiments and weigh on trade, investment and consumption.
“We feel that the tone of the latest MPS is dovish. While the committee continued to expect growth in the global economy, it stated that downside risks have risen. Nevertheless, the committee continued to anticipate Malaysia's growth to remain on a steady growth path, supported by domestic and external demand,” said Hong Leong Investment Bank (HLIB) Research.
On inflation, BNM forecast price pressures to be more modest due to transitory factors.
Similarly, HLIB Research anticipates growth at a more moderate pace of 5.2% and inflation to be more modest at 1.8% this year.
“The MPC said that the degree of monetary accommodativeness is consistent with intended policy stance. On this note, we opine that BNM is comfortable in maintaining the OPR at its current level for now,” it said.
Its base case is for BNM to remain on hold for the rest of 2018 unless growth surprises on the downside.
PublicInvest Research said the outlook on the policy rate will be data-dependent given the on-going economic recharting and rebalancing.
“We expect better visibility once the fiscal plan gets firmed up in November in conjunction with the tabling of Budget 2019. Until then, we foresee no policy interventions for the rest of the year,” it said.
Meanwhile, PublicInvest Research said that the ringgit may continue to suffer from exogenous short-term noises particularly from the ongoing trade frictions and the series of US interest rate adjustments.
However, it noted that the ringgit is tracking regional currencies' movements, particularly the rupiah and the baht, and maintained its full-year average forecast of RM4 per dollar.
BANGKOK, July 12 — Thailand’s economy is strong enough to withstand the risks of a trade war and the volatility engulfing emerging markets, Industry Minister Uttama Savanayana said. “Our economy is strong enough,” Uttama said in an interview…
KUALA LUMPUR (July 12): The FBM KLCI reversed its earlier losses and climbed 0.44% at midday break, tracking regional markets, lifted by gains including at banking heavyweights Malayan Banking Bhd and Pulic Bank Bhd. At 12.30pm, the FBM KLCI rose 7.41 points to 1,696.18. The index had earlier slipped to its intra-morning low of 1,686.14. Gainers overtook losers by 277 to 236, while 506 counters traded unchanged. Volume was 1.24 billion shares, valued at RM815.69 million. Top gainers included Malaysian Pacific Industries Bhd, Kossan Rubber Industries Bhd, Maybank, Hartalega HoldingsRead More
KUALA LUMPUR: The ringgit was lower versus the US dollar at Thursday's opening on lack of demand for the local note, a dealer said.
At 9am, the ringgit was quoted at 4.0440/0470 against the US dollar compared with 4.0370/0420 recorded at Wednesday's close.
The dealer said the US dollar was traded higher on prospects of another round of US tariffs directed at China.
“We see now with US President Donald Trump's announcement of the new 10% tariff to be imposed on a list of US$200 billion worth of Chinese imports, the greenback has received a boost,” he said.
On the local front, Bank Negara Malaysia held a very even tone at yesterday's Monetary Policy Committee (MPC) meeting favouring policy continuity, he said.
The central bank yesterday, via its fourth MPC meeting, has kept its Overnight Policy Rate (OPR) at 3.25%.
It said at the current OPR level, the degree of monetary accommodativeness is consistent with the intended policy stance.
Against a basket of major currencies, the ringgit traded higher.
It rose against the Singapore dollar to 2.9629/9661 from 2.9651/9699, and strengthened against the yen to 3.6065/6102 from 3.6297/635 on Wednesday.
The ringgit was higher against the euro at 4.7222/7261 from 4.7237/7312, and rose against the British pound to 5.3389/3445 from 5.3466/3552. — Bernama
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Thursday , 12 July 2018
KUALA LUMPUR: Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 3.25 per cent after the two-day Monetary Policy Committee (MPC) meeting which ended yesterday. In a statement, the central bank said at the current OPR level, the degree of monetary accommodativeness is consistent with the intended policy stance. “The MPC will […]
KUALA LUMPUR, July 11 — The ringgit ended lower against the US dollar today after Bank Negara Malaysia (BNM) left its interest rates unchanged today, a dealer said. At 6pm, the local note finished at…
KUALA LUMPUR, July 11 — Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 3.25 per cent after the two-day Monetary Policy Committee (MPC) meeting which ended today. In a statement today, the central bank said at the…
KUALA LUMPUR: Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 3.25 per cent after the two-day Monetary Policy Committee (MPC) meeting which ended today. In a statement today, the central bank said at the current OPR level, the degree of monetary accommodativeness is consistent with the intended policy stance. “The MPC will continue to monitor […]
PETALING JAYA: Bank Negara Malaysia (BNM) announced that the Overnight Policy Rate (OPR) will remain unchanged at 3.25%.
The decision was made after its Monetary Policy Committee (MPC) meeting today.
The central bank said in a statement at the current level of the OPR, the degree of monetary accommodativeness is consistent with the intended policy stance, taking into account monetary and financial conditions.
“The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.”