BNM could reduce rates further later this year – UOB

Bank Negara Malaysia (BNM) is expected to refrain from acting on rates at Tuesday’s meeting, although extra easing should not be discarded later in the year, suggested Economist at UOB Group Lee Sue Ann.

Key Quotes

“We think that BNM will review the effectiveness of a front loaded 50 bps cut in its OPR in 1Q20 and MYR260bn fiscal package at the upcoming monetary policy meeting before deciding if further monetary adjustments are required to support the economy. Nonetheless, we have pencilled in another 50 bps rate cut for the year giving that broad risk to both GDP and CPI growth remains tilted to the downside”