0852 GMT - Malaysia's recent RON95 fuel subsidy reforms might not lead to higher inflation, as most consumers remain subsidized and the resulting logistics cost pass-through to final prices is expected to be limited, UOB economists Julia Goh and Loke Siew Ting say in a note. Despite a slight rise recently, inflation has averaged at a modest pace of 1.4% January through September, they note. With subdued inflation and resilient domestic demand, UOB expects inflation to come in at 1.4% in 2025, before rising to 2.0% in 2026. Given the stable growth and contained inflation outlook, they expect Bank Negara to hold its benchmark interest rate steady at 2.75% at its November meeting, following the recent expansionary budget focused on sustaining GDP growth of 4% or more in 2026. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

October 22, 2025 04:52 ET (08:52 GMT)

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