0711 GMT - Malaysia's headline inflation may trend higher in 2H due to base effects and potential subsidy cuts, UOB economists Julia Goh and Loke Siew Ting say in a note. They forecast full-year inflation at 2.3%, up from 1.8% in 2024. While external risks such as U.S.-China tensions and U.S. tariffs persist, domestic demand is expected to grow modestly, they reckon. Based on their channel checks, businesses are urging the government to delay subsidy reforms. If these proposals are considered, that would support a benign inflation outlook, while potential excess supply stemming from potential dumping may drive prices lower, they add. UOB expects Bank Negara to keep its policy rate at 3.0%, maintaining a wait-and-see approach ahead of clearer signals from global trade policy. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
April 23, 2025 03:11 ET (07:11 GMT)
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