Analysts at Commerzbank Research said in a report that the Bank of Malaysia is expected to keep its policy interest rate unchanged at 2.75% for the rest of the year. The Malaysian economy grew 5.6% year over year in the first half of the year, exceeding the Bank of Malaysia's forecast of 4% to 5% for the whole year. Consumer prices rose 1.9% year over year in June, compared to 2.0% in May. Given the mild inflation environment and resilient growth momentum, analysts at Commerzbank Research Division believe there is little need for the central bank to adjust its monetary policy. They said, “The neutral position also reserves policy space for the Bank of Malaysia to deal with the two-way risks facing economic growth or inflation.”

Zhitongcaijing · 2d ago
Analysts at Commerzbank Research said in a report that the Bank of Malaysia is expected to keep its policy interest rate unchanged at 2.75% for the rest of the year. The Malaysian economy grew 5.6% year over year in the first half of the year, exceeding the Bank of Malaysia's forecast of 4% to 5% for the whole year. Consumer prices rose 1.9% year over year in June, compared to 2.0% in May. Given the mild inflation environment and resilient growth momentum, analysts at Commerzbank Research Division believe there is little need for the central bank to adjust its monetary policy. They said, “The neutral position also reserves policy space for the Bank of Malaysia to deal with the two-way risks facing economic growth or inflation.”