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Bank Negara Malaysia keeps overnight policy rate on hold at 3 pct

The Malaysian central bank, Bank Negara Malaysia, stood pat today. The Overnight policy rate was kept on hold at 3 percent; however, the bank indicated that it will review the extent of accommodation required in the current environment of entrenched growth.

The central bank gave a positive assessment of growth conditions with a negligible reference to downside risks. It noted synchronized strength in domestic and external demand, positive spill-overs from external demand into investment and wages and sustained infrastructure investment cycle.

Even if attributing the currently high inflation to increased global crude oil prices, the Malaysian central bank acknowledged that full year 2017 inflation was expected to be at the upper end of its forecast estimate corridor of 3 percent to 4 percent. The central bank expects inflation to moderate next year but is likely to be sensitive to oil prices. Meanwhile, core inflation is expected to be sustained by strong domestic demand. The BNM, consequent to the positive assessment of growth and inflation, has implied that it is expected to review the current degree of monetary accommodation.

“In our view, the region’s growth trajectory is not only strengthening but also gaining breath, thereby creating a favorable backdrop for policy normalization”, said ANZ in a research report.

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November 24 15:30 UTC Released

USECRI Weekly Index*

Actual

145.6 %

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Previous

145.6 %

November 24 14:45 UTC Released

US1st Half-Mth Infl YY*

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54.6 %

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54.6 %

November 27 09:00 UTC 28422842m

ITExport Prices*

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111 %

November 27 09:00 UTC 28422842m

ITImport Prices*

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116.1 %

November 27 14:00 UTC 31423142m

MXTrade Balance, $*

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-1.886 Bln USD

November 27 14:00 UTC 31423142m

MXTrade Balance SA*

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Forecast

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-1.559 Bln USD

November 27 15:30 UTC 32323232m

USDallas Fed mfg bus index

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27.6

November 27 21:00 UTC 35623562m

KRBOK Manufacturing BSI*

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Forecast

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87 Bln BRL

November 28 00:00 UTC 37423742m

BRCentral Govt Balance

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Forecast

Previous

-22.725 Bln BRL

November 28 07:00 UTC 41624162m

DEGDP Growth QQ* Advance

Actual

Forecast

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10.7 %

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