Malaysia: No changes expected at the BNM meeting – UOB

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Lee Sue Ann, Economist at UOB Group, suggests the Bank Negara Malaysia (BNM) could leave the key rate unchanged at its meeting on May 6.

Key Quotes

“The resurgence in COVID-19 infections and re-tightening of selective containment measures in the country in April reinforce labour market slack and bumpy economic recovery in 2Q21.”

“Underlying inflation remains muted with core inflation staying below 1.0% level for six months.”

“As such, we expect BNM to keep interest rates on hold while continuing to monitor developments of the pandemic and coordinate with the government on a mor targeted fiscal approach.”