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MNI BNM Preview - September 2024: Firmly On Hold

BNM
  • Bank Negara Malaysia (“BNM”) is likely to remain on hold at tomorrow’s policy meeting. The BNM is in a fortuitous position whereby there is limited need to cut rates given the trajectory of the economy. The data following the last BNM meeting has surprised to the upside.
  • There remains some upside potential for CPI given the shift in diesel subsidies, though, this risk now appears manageable given we are at the lower end of the BNM’s target for the year. For now, given the slowing growth outlook for many of Malaysia’s neighbours (particularly China), the upside risks to CPI appear manageable, especially with the strength of the currency against the dollar.
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