malaymail.com 03 May, 2021 11:15 am

HSBC: BNM likely to maintain OPR at 1.75pc

HSBC: BNM likely to maintain OPR at 1.75pc
KUALA LUMPUR, May 3 — HSBC Global Research expects Bank Negara Malaysia (BNM) to keep the Overnight Policy Rate at 1.75 per cent at its third Monetary Policy Committee meeting on Thursday. In a research note today, its chief economist for ASEAN, Joseph Incalcaterra, said despite downside risks to...

In a research note today, its chief economist for ASEAN, Joseph Incalcaterra, said despite downside risks to BNM’s economic growth forecast, there was a high bar for further monetary policy accommodation.Incalcaterra said HSBC Global Research expected the upward momentum for export to be sustained after the country recorded a 31 per cent year-on-year increase in March, which was driven by a 47.Moreover, Incalcaterra said headline inflation was likely to continue rising in 2021 due to base effects and higher energy prices.“This could significantly derail the pace of the recovery in the second quarter,” said Incalcaterra.

KUALA LUMPUR, May 3 — HSBC Global Research expects Bank Negara Malaysia (BNM) to keep the Overnight Policy Rate at 1.“The government has also secured enough vaccine doses to enable the country to achieve some form of herd immunity by end-2021, despite supply challenges and signs of vaccine hesitancy in the short term,” he added.

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