KUALA LUMPUR, Sept 4 — The Monetary Policy Committee (MPC) is scheduled to hold its fifth meeting on September 10, with market expectations mixed towards prospects of a further interest rate cut by Bank Negara Malaysia (BNM), said IHS Markit.

It will be MPC’s second last meeting for 2020 before holding the last one on November 3.

BNM has maintained the Overnight Policy Rate (OPR) at 1.75 per cent in August and had reduced rates four times so far this year, with the last rate cut seen in July. 

"Malaysia’s central bank watchers have mixed views on whether further stimulus will be announced at the forthcoming monthly meeting.

"Deflationary pressures and prospects of further economic uncertainties have led to increasing calls for more rate reductions to support the economy,” the research firm said in a statement today.

IHS Markit said the recent Purchasing Managers' Index (PMI) data showed that Malaysia has sustained its recovery from the Covid-19 downturn, although August survey data signalled an easing in manufacturing output growth and continued softening of order book volumes.

Factory jobs were also reduced at a survey-record rate, it added. — Bernama