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Malaysia: Policy Rate Held At 3.0% (Consensus 3.0%) in Nov-24

• Bank Negara Malaysia's MPC maintained its official policy rate at 3%, in line with forecasts, highlighting sustained economic strength and controlled inflation.
• Inflation, currently moderate, faces potential upside risks from domestic policy effects, global commodity prices, and financial market changes.
• The MPC's data-dependent stance implies ongoing assessments of inflation and growth developments will inform future rate decisions.

Malaysia Policy Rate 3.0% (consensus 3.0%) in Sep-24

• Bank Negara Malaysia held the OPR at 3%, consistent with expectations, reflecting a supportive stance for growth amid moderate inflation and global trade recovery.
• Future interest rate policies will depend on the balance between downside risks such as weaker external demand and commodity production, and upside risks from the global tech upcycle and increased investment activity.
• It expects inflation to remain below 3%, with the outlook dependent on domestic policy measures regarding subsidies, price controls, and global commodity price movements.

Malaysia Policy Rate 3.0% (consensus 3.0%) in Jul-24

• Bank Negara Malaysia maintained the OPR at 3.00%, aligning with the economic consensus amid a cautious approach to managing inflation and supporting economic growth.
• Future interest rate policies will be influenced by global economic stability, the strength of the domestic tech upcycle, and the impact of domestic policy measures on subsidies and price controls.
• Inflation is expected to rise moderately in the second half of 2024 due to subsidy rationalization. Still, overall pressures are mitigated by targeted measures to support businesses, with headline and core inflation projected to average between 2.0% - 3.5% and 2.0% - 3.0%, respectively.

Malaysia CPI Inflation 2.0% y-o-y (consensus 1.9%) in May-24

- Malaysia's CPI inflation in May 2024 was 2.0% y-o-y, slightly exceeding the consensus estimate and marking the highest growth rate since June 2023.
- The CPI growth, while the M3 money supply is up by 6.1% y-o-y, indicates potential upward pressures on consumer prices, warranting close attention by monetary policymakers.