“Further normalisation to the degree of monetary policy accommodation would be informed by the evolving conditions and their implications to the domestic inflation and growth outlook,” it said.
The government expects economic growth of 4.5% this year, down from a 22-year high of 8.7% last year, but some analysts forecast it could be much lower.
Highlighting weakening demand, Malaysia’s exports rose just 1.6% in January on-year, far below analysts’ estimates, though China’s reopening after years of COVID curbs could cushion lower shipments to North America and Europe this year.
“The way we see it, a possible rate hike is still on the cards this year, probably around 25 basis points,” Mohd Afzanizam Abdul Rashid, chief economist at Malaysia’s Bank Muamalat, told Reuters.
Oxford Economics and Capital Economics, however, said BNM was likely done with rate hikes for the year, amid a decline in exports and consumer spending. (Ach/Ktn)
