KUALA LUMPUR: Bank Negara Malaysia ( BNM) expects the price of goods and services to decline following the new government's announcement to reduce the Goods and Services Tax to zero per cent on June 1, 2018.
Governor Tan Sri Muhammad Ibrahim said it was important for the relevant authorities to ensure that businesses pass the benefit to the public at large.
“Mostly like than not it will have an impact on the inflation but it is too early for us to calculate (the inflation rate) right now.
“The inflation rate for the first quarter is set between the rate of two and three per cent, but with the information coming in, we will look at it again.
“If need be, we will revise the rate,” he reporters after announcing the first quarter Gross Domestic Product (GDP) here. - Bernama