BNM Leaves OPR Unchanged, Industrial Output Index Beats

Spot USD/MYR re-opened slightly lower, but has trimmed losses and last sits -20 pips at MYR4.1205, after Thursday's BNM MonPol decision & industrial production data.

• As we predicted and in line with BBG consensus, BNM maintained its OPR at 1.75% yesterday, pointing to green shoots in economic indicators and flagging downside risks related to the course of the pandemic.
• Malaysia's industrial production index surged 9.3% Y/Y in March, beating expectations of a 8.7% increase and reaching highest levels since Jul 2013, with gains driven by m'fing & electricity sub-indices. The value of m'fing sales grew 15.3% Y/Y over the same month.
• Finance Ministry said that the gov't will inject MYR440mn into the State Reserve Fund to help regional gov't's in dealing with the consequences of the Covid-19 outbreak.
• Health Min Adham said that there are no delays in the National Covid-19 Immunisation Programme and there is a chance it will be completed ahead of schedule.
• Sabah Local Government and Housing Min suggested that the state will introduce a ban on all inter-district travel from Monday.
• BNM will release foreign reserve data later today. Next week, focus turns to Tuesday's Q1 GDP & BoP current account balance.
• A break above May 6 high of MYR4.1267 would clear the way to Apr 16 high of MYR4.1318, while bears look for a dip through Apr 30 low of MYR4.0877.