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

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 »

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

Posted Date : August 11, 2022 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 …

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

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

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 »

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

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 »

20220121 whatwethink-BNM determined to support growth Page 1

BNM determined to support growth

The first Monetary Policy Committee (MPC) meeting of 2022 saw Bank Negara Malaysia (BNM) holding the overnight policy rate (OPR) unchanged at the record low of 1.75%. BNM has been on status quo since July 2020. The decision is in line with our expectation as we deem the current accommodative monetary settings as still necessary …

BNM determined to support growth Read More »