Malaysia: BNM to undertake another 25bp cut – ANZ

Inflation eased to 1.3% y/y in February from 1.6% previously on the back of lower contributions from food and fuel, analysts at ANZ Research inform. USD/MYR is trading at 4.386.

Key quotes

“On an annual basis, inflation eased to 1.3% y/y in February from 1.6% previously.”

“Core inflation eased to 1.3% y/y in February, from 1.7% previously.”

“We expect Bank Negara Malaysia (BNM) to undertake another 25bp cut, bringing the Overnight Policy Rate (OPR) to 2.25%.”