Economist Lee Sue Ann at UOB Group suggested the BNM would refrain from acting on its key rates at its meeting later in the month, leaving a potential cut for later in the quarter.
Key Quotes
“We do not think that the projected upward trajectory of inflation would constrain BNM’s ability to ease monetary policy in 2020. Risks to domestic growth are still skewed to the downside amid lingering external headwinds and policy uncertainties, which may cap any improvement in investment. Hence, we have pencilled in a 25 bps cut in the Overnight Policy Rate (OPR) to 2.75% in 1Q20, possibly during the March meeting.”
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