Macro Analysis /

MY : Economic - BNM affirms road to recovery

    1 April 2021
    Published byCGS-CIMB

    Slight downgrade in BNM’s GDP growth forecast range to 6.0-7.5% reflects risks related to Covid-19, commodity supply shocks and market volatility. The deviation between our revised GDP forecast of 5.7% vs. BNM’s lies in our more conservative outlook on private consumption and services recovery. Despite higher inflation projections, BNM noted risk of premature withdrawal of policy support; i.e. we think OPR hikes are not on the cards until 2022.