Fixed-Income Views

Today, Bank Negara Malaysia (BNM) announced its Monetary Policy Committee’s (MPC) decision to increase the overnight policy rate (OPR) by 25 basis points to 2.50%. The hike, the third in as many MPC meetings, further rolls back part of the monetary support implemented during the worst of the COVID-19 crisis. After the pandemic emerged in …

MARC Ratings upgrades 2022 GDP growth forecast to 6.5% despite consecutive OPR hikes Read More »

Posted Date: August 25, 2022 Local govvies mostly rallied in July, reflecting the movements in major government bond markets. Major government bond yields were lifted by stronger haven demand as concerns about a recession escalated after a recent stream of economic data, from the US to Europe, flashed signs of a slowing global economy. On …

BNM to continue on a monetary tightening path amid foreign bond outflows, rising inflation risks and weakened ringgit Read More »

Local govvies mostly rallied in July, reflecting the movements in major government bond markets. Major government bond yields were lifted by stronger haven demand as concerns about a recession escalated after a recent stream of economic data, from the US to Europe, flashed signs of a slowing global economy. On the local front, encouraging government …

BNM to continue on a monetary tightening path amid foreign bond outflows, rising inflation risks and weakened ringgit Read More »

We opine that Malaysia’s real gross domestic product (GDP) growth will likely pick up strongly by 8.5% y-o-y in 2Q2022, compared with the 5.0% recorded in 1Q2022. Our upbeat assessment is premised on the ongoing strength in private consumption growth, as suggested by high-frequency indicators despite a substantial uptick in imports. Private consumption will remain …

2Q2022 GDP: Growth currently consumption-driven, but will recede Read More »

Posted Date: August 2, 2022 Foreign investors decreased their local bond holdings in June amid the aggressive rate hikes of 75 bps by the US Federal Reserve (Fed) and global risk-off sentiment. June recorded the highest foreign outflows to date, amounting to RM4.1 billion. Consequently, total foreign holdings shrank further to RM253.3 billion (May: RM257.5 …

Foreign investors reduce local bond holdings, struck by the Fed’s aggressive rate hikes and global risk-off sentiment Read More »