Macro Analysis /
Malaysia

MY : Economic -MPC: MCO 2.0 puts BNM on the defensive

    CGS-CIMB
    20 January 2021
    Published byCGS-CIMB

    BNM held the OPR at 1.75% at the first monetary policy meeting of 2021, in line with our expectations. More dovish language in MPC statement reflects the policymaker’s concerns over the near term economic outlook due to MCO 2.0. Amid concerns that MCO 2.0 restrictions could remain in place for a protracted period, we forecast BNM to cut the OPR by 25bp in 1H21.