• BNM holds OPR at 3.00% with neutral tone

• The central bank remained cautious on growth and less dovish

• BNM expects inflation to remain low in 2019

• BNM’s rate path ahead depends on US and China

As expected, BNM kept the Overnight Policy Rate (OPR) at 3.00% after its Monetary Policy Committee (MPC) meeting on 4-5 Nov 2019. BNM lowered OPR by 25bps back in May 2019 and has since kept it unchanged.

In the Monetary Policy Statement (MPS), the policymakers said that the growth will continue to be supported by resilient private spending. Household consumption growth is driven by stable employment and wage growth. Meanwhile, inflation is expected to remain low in 2019 and is expected to average higher but remain modest in 2020. Meanwhile, the stance of monetary policy remains accommodative and supportive of economic activity.

Source: BIMB Securities Research - 6 Nov 2019