BI could cut rates further in March – UOB

In opinion of Lee Sue Ann, Economist at UOB Group, the BI is seen reducing its benchmark rate once again at the March meeting.

Key Quotes

“We expect BI to keep its accommodative monetary policy stance to support growth recovery. As such, we keep our call for BI to shade its benchmark rate lower by 25bps to 4.75% in 1Q20 (likely during the March meeting), on top of alternative monetary policy via macroprudential and liquidity-supporting measures to effectively transmit the lowering of the benchmark interest rate into the economy”.