BNM Stand-Pat Decision Easily Digested

Spot USD/MYR consolidates after Wednesday's monetary policy decision from BNM. The rate operates -5 pips at MYR4.0430.

• Bank Negara Malaysia left its OPR unchanged at a record low 1.75%, in a decision seen as too close to call. Policymakers noted that "the stance of monetary policy going forward will be determined by new data and information, and their implications on the overall outlook for inflation and domestic growth."
• Sabah's State Local Government and Housing Minister Masidi said that it is too early to say if the Movement Control Order introduced in the state is working and it will take two weeks to see the full picture.
• Opposition leader Anwar said that the majority of MPs submitted a letter to the King, asking him to reconsider the emergency declaration.
• A fall through Jan 15 low of MYR4.0325 would give bears a green light for targeting Jan 4 low of MYR3.9957. On the flip side, a move through the 50-DMA at MYR4.0620 would bring Jan 12 high of MYR4.0760 into play.
• Malaysia will publish its CPI report for the month of Dec this Friday.