Malaysia’s central bank is likely to keep its policy rate on hold at 3.25% (11.00 BST) following the governor’s recent comments that the current interest rate level is supportive of growth. Any thoughts of rate hikes are a long way off. Admittedly, headline inflation picked up in March and is likely to accelerate further once the Goods and Services Tax is brought in. However, the spike in inflation will almost certainly prove temporary, with the downward trend in core inflation suggesting that underlying price pressures are weak.
The material has been provided by InstaForex Company – www.instaforex.com