According to economists and analysts, the appointment of Muhammad(pic) is a positive development as it helps alleviate a lot of market uncertainties about Malaysia
KUALA LUMPUR: Standard Chartered Global Research has shifted its interest rates outlook to ‘positive’ from ‘neutral’ on possible further cut in policy rate in the future.
In a research note today, Standard Chartered said, it expected Bank Negara to cut the policy rate in November.
The research firm said it has lowered its full-year growth forecast to 3.8% from 4%, given the slowdown for a third consecutive quarter.
“Bank Negara governor, (Datuk) Muhammad Ibrahim, in an interview with state-owned news agency, Bernama, on July 15, 2016, noted that the rate cut in July was pre-emptive and that he expected stronger growth in the second half.
“Therefore, although we still see impetus for more monetary easing, we believe the central bank will wait for more data before it sanctions another cut in November,” it said.
The company said although its base scenario was that Bank Negara would not ease before November it expected the market to price in a more dovish Bank Negara policy stance and demand for Malaysian Government Securities to increase. - Bernama
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