Business Daily Media

Men's Weekly

.

BNM has left its base rate unchanged: Octa broker analyses the decision

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 13 September 2024 - The Malaysian economy is growing faster than expected, and the local currency has appreciated quite noticeably. However, the central bank has maintained the interest rate at 3.00%, in accordance with the economists' expectations.

Still, Octa analysts expect that the BNM may soon lower the rates.

Octa

Bank Negara Malaysia (BNM), Malaysia's central bank, announced its policy rate decision on Thursday, 5 September. Like most central banks worldwide, BNM strives to balance low inflation and sustainable economic growth. Its key monetary policy instrument is the Overnight Policy Rate (OPR). By adjusting the OPR, BNM influences interest rates throughout the Malaysian economy, impacting borrowing costs for businesses and consumers and ultimately influencing economic activity and inflation.

Malaysia inflation and interest rate vs USDMYR exchange rate
Malaysia inflation and interest rate vs USDMYR exchange rate

It was a difficult decision for the central bank to maintain the interest rate at its current level. The bank is trying to strike a delicate balance between a strong economy and potentially incendiary inflation on the one hand and a dovish Federal Reserve (Fed) and appreciating ringgit on the other. According to the latest data published on 16 August, the annual growth rate of the gross domestic product (GDP) accelerated to 5.9% in Q2 2024, its fastest pace in 18 months. Economic growth for 2024 is expected to exceed the central bank's forecast of 4-5%, driven by a continued increase in consumer spending and a recovery in exports. 'Lowering borrowing costs when the economy is expanding risks spurring inflation, especially given that the government continues to gradually phase out subsidies programs,' says Kar Yong Ang, a financial market analyst at Octa broker. However, inflation seems to have stabilised lately. Malaysia's consumer price index (CPI) rose 2.0% in July from a year earlier, matching the increases of the previous two months. Furthermore, the rise was slightly less than the 2.1% increase forecast in a Reuters poll.

Meanwhile, the Malaysian ringgit has strengthened against the US dollar, significantly reducing import prices. Indeed, Octa analysts expect Malaysian inflation to remain low in Q4 due to strong ringgit. At the same time, many countries are gradually reducing or have already reduced interest rates. The BNM's decision to keep the rates unchanged is somewhat controversial. 'It was a tough decision to make,' argues Kar Yong Ang. 'BNM is probably thinking about how and when to cut the rate so that it does not fall far behind other central banks––especially the Fed. However, the BNM did not choose to lower rates ahead of the Fed. A sharp fall in USDMYR supports the case for a rate cut later this year as inflation risks seem to be well-anchored at this point.'

Still, a recent Reuters poll of economists expects the BNM to maintain interest rates at their current levels until the end of 2026.

'As we expected, BNM held the rates unchanged, but the likelihood of a reduction in the near term has increased,' says Kar Yong Ang, adding that future decisions will largely depend on what the Fed does and on the overall economic conditions in the global market. In particular, the appreciation of the domestic currency, which is currently taking place, has a negative impact on exports but also helps push inflation down. There is also a trend towards lower interest rates, followed by other countries in the region––notably, the Reserve Bank of New Zealand (RBNZ) and the Central Bank of the Philippines have lowered rates in recent weeks.

'We anticipate a decrease in the interest rate either this year or in Q1,' said Kar Yong Ang. Octa analysts expect USDMYR to drop below 4.250 in the near term.


Hashtag: #Octa

The issuer is solely responsible for the content of this announcement.

Octa

is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, Octa received the ‘Best Trading Platform Malaysia 2024’ and the ‘Most Reliable Broker Asia 2023’ awards from Brands and Business Magazine and International Global Forex Awards, respectively.

News from Asia

Tenchijin Named Finalist for IVS2025 LAUNCHPAD

Exhibiting at IVS Startup Market to Showcase Advanced Water DX Solutions TOKYO, JAPAN - Media OutReach Newswire - 30 June 2025 - Tenchijin Inc...

ESET and Canon Extends Regional Alliance to Combat Asia’s Security Challenges

SINGAPORE - Media OutReach Newswire - 30 June 2025 – ESET Asia Pte. Ltd. ("ESET"), a global leader in cybersecurity, and Canon Singapore Pte. Ltd. ("Canon") today announced the signing of a Memora...

Counterfeit and Refurbished Transducers Pose Serious Safety Risks

Merz Aesthetics® Hong Kong Launches Ultherapy® Authenticity Verification Reward Program This August Consumers Urged to Verify Ultherapy® Transducers Authenticity for Safe and Effective Treatments H...

Porsche Design Tower Bangkok and Curvistan Bangkok Host an Exclusive Preview of the "Electrifying Past. Present. Future." Exhibition

BANGKOK, THAILAND - Media OutReach Newswire - 28 April 2025 - Porsche Design Tower Bangkok showcased its commitment to innovation by hosting an exclusive evening reception with Curvistan Bangkok, ...

Hong Kong: Bridging Business Opportunities under the Belt and Road Initiative

HONG KONG SAR - Media OutReach Newswire - 30 June 2025 - As a global trade and financial centre and a key link in the Belt and Road Initiative (B&RI), Hong Kong plays a pivotal role in connect...

Octa Black: Octa broker's premium trading experience

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 1 July 2025 - Octa, a globally regulated and trusted broker since 2011, rewards its high-value clients in Indonesia, Malaysia, and Nigeria with a...

Gaw Capital Appoints Nicholas Toh as Managing Director – Head of Data Centre Platform, Asia (Ex-China)

SINGAPORE - Media OutReach Newswire – 1 July 2025 – Gaw Capital Partners, a leading multi-asset investment management firm, is pleased to announce the appointment of Mr. Nicholas Toh as Managin...

Prime Immigration Consultancy Announces Expansion of Service Offerings to Help Clients Achieve the Singapore Dream

SINGAPORE - Media OutReach Newswire - 1 July 2025 - Prime Immigration Consultancy (PIC), a Singapore-based immigration consultancy, has announced an expansion of its services to provide more comp...

ICONSIAM in Collaboration with Shanghai Yuyuan Tourist Mart Group Brings China’s Most Iconic Lantern Festival to Thailand for the First Time

“Yuyuan Lantern Festival 2025” Lights Up Bangkok to Celebrate 50 Years of Thai–Chinese Diplomatic Ties BANGKOK, THAILAND - Media OutReach Newswire - 1 July 2025 - ICONSIAM, the global landmark al...

SIBUR to expand cooperation with clients in Bangladesh

MOSCOW, RUSSIA - Media OutReach Newswire - 1 July 2025 - SIBUR, Russia's largest producer of polymers and synthetic rubbers, sees potential to increase supplies to Bangladesh following the launch ...

Demand for Home Batteries surges as Federal Rebate Kicks In

A leading provider of energy solutions VoltX Energy has seen a 400% increase in demand for home batteries in the past three weeks as people put d...

Why Sport Remains the Safest Bet in an Uncertain World

When Rome was in crisis, its leaders did not retreat to the Senate. They went to the circus. To the chariot races. To the gladiators. Sport was no...

THE FINE LINE WITHIN HILARIOUS SIGNAGE DESIGN FAILS

It seems like design failures still occur in today’s modern branding era, despite rigorous rounds of approvals behind the scenes. One signage show...

Deputy Announces Exclusive Global Partnership with Predelo to Bring AI to Shift-Based Businesses

Deputy, the global people platform for shift-based businesses, has announced an exclusive partnership with Predelo, an AI Decision Agent-as-a-Serv...

Leftover Budget? The Last-Minute EOFY Tip to Drive Business Success in FY25/26

The countdown is on. With just days left until EOFY, now’s the time to make your remaining 2024–2025 budget work harder and smarter. After workin...

pay.com.au appoints new CEO and Managing Director

The former COO will lead the company’s next growth phase, with ex-CEO Edward Alder transitioning into the role of Managing Director AUSTRALIA, 25...

Sell by LayBy