Highlight During the Month of March 2023

Economic – The FOMC raised the Fed Funds rate by 25 bps to contain inflation, despite situation surrounding the banking system post-SVB failure. On the domestic front, BNM forecasts GDP growth of 4.0% - 5.0% in 2023.

Fixed Income – Bid for safe-haven following banking turmoil caused global yields to drop. Local bond market benefitted from the risk averse mode.

Forex – The greenback declined as rate cut argument resurfaced after the banking turmoil. Most central banks remain committed in fighting inflation although we noticed less hawkish stance from the RBA.

Other Markets – Global equities traded slightly higher after the volatile market period due the US and Europe’s banking turmoil. Concerns on the spill over effect from global banking turmoil to real economic activity pushed oil price lower.

Source: AmInvest Research - 5 Apr 2023