0157 GMT - The change in Bank Negara Malaysia's policy language could give the central bank more flexibility to adjust policy, say Goldman Sachs economists Chris Poh and Danny Suwanapruti in a note. Contained inflation means it can afford to wait for clearer evidence of broader price pressures before raising rates, they say. Stronger growth, with 2026 GDP now expected at around 5%, reduces the need for policy support and gives BNM more room to tighten if inflation risks broaden. Meanwhile, limited wage pressures and contained pass-through should allow policymakers to remain patient, GS says. GS expects BNM to maintain the policy rate at 2.75% through 2026, but sees rising risks of a 25 bps hike in 1H 2027.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.