Malaysia: BNM expected to hold rates at 2.00% - UOB

Lee Sue Ann, Economist at UOB Group, sees the Bank Negara Malaysia keeping its monetary policy unchanged at the July 7 meeting.

Key Quotes

“BNM cut the OPR by 50bps to 2.00% in May. This brings cumulative rate cuts to 100bps between Jan-May.”

“We expect policy rates to stay unchanged at 2.00% for rest of the year based on projections for a modest recovery in 2H20 supported by reopening of the economy since May and sizeable MYR295bn (or 20% of GDP) fiscal package.”