Inflation turned negative in March (-0.2% y/y) on the back of a sharp fall in transport costs, a fallout of the recent massive drop in global oil prices, per ANZ Bank. USD/MYR is trading at 4.385.
Key quotes
“On a sequential basis, headline inflation decreased 1.2% m/m in March on the back of an 8.7% m/m decline in the ‘Transport’ component. ‘Food’ prices also declined by 0.1% m/m.”
“On an annual basis, inflation eased to -0.2% y/y in March from 1.3% previously.”
“Core inflation remained unchanged at 1.3% y/y in March.”
“We expect Bank Negara Malaysia (BNM) to cut by 25bps, bringing the Overnight Policy Rate (OPR) to 2.25%.”
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