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CPI Moderates.

BNM
  • July CPI rose 2.0% year on year versus 2.0% prior.
  • Market expectations were 2.1% year on year.
  • Core inflation rose 1.9% year on year.
  • Like several of its neighbours in South East Asia, Malaysia now has the enviable situation of better than expected growth and stable inflation.
  • BNM’s next meeting on September 5th is just prior to the Federal Reserve’s much anticipated September meeting.
  • Today’s data likely gives breathing space for the BNM to stay on hold pending the outcome of the FED.

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