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The Bank Negara Malaysia (BNM) is forecasted to keep the policy rate unchanged at its meeting on Tuesday, noted Economist at UOB Group Lee Sue Ann.

Key Quotes

“The lower bound of the BNM’s GDP projections of -3.5% to -5.5% for this year does assume downside risks including a setback in global growth, prolonged COVID-19 outbreak, and targeted Movement Control Order (MCO) in high risk areas.”

“Moreover, we expect further fiscal support in the coming Budget 2021.”

“BNM also has other policy levers that can be used to support the recovery. As such, we expect BNM to keep the overnight policy rate unchanged.”