KUALA LUMPUR, Jan 20 — Bank Negara Malaysia (BNM) would most likely maintain the overnight policy rate (OPR) at 3.00 per cent during the January Monetary Policy Committee (MPC) meeting, said AmBank group chief economist and head of research Anthony Dass.
He said this was in spite of the decline in overall business and consumer sentiments and at a time when the ringgit rose by about 0.4 per cent to around 4.06 levels against the US dollar, which provided ample room for a rate cut.
“Global uncertainties are on a softer tone. If a rate cut does takes place in January, it can be viewed positively as it should provide positive impetus to private consumption which is the anchor for growth and investment, complemented by exports in 2020,” he said in AmBank Research’s Global Markets report.
Dass said during November’s MPC meeting, BNM had left the policy rate unchanged with a less dovish outlook.
“Furthermore, major central banks like the United States (US) Federal Reserve, European Central Bank, Bank of England and Bank of Japan are expected to maintain their current accommodative monetary policy during the January policy meetings.
“Likewise, Bank Indonesia is also not expected to cut rates during its January policy meeting,” he added. — Bernama
