ANZ cuts Malaysia’s GDP growth, CPI forecasts for 2018, 2019

SINGAPORE: Malaysia’s gross domestic product (GDP) growth forecast for this year lowered to 5.4% from 5.7%, while 2019 projection revised down to 5.2% from 5.5%, according to Australia & New Zealand Banking Group Ltd analysts led by Khoon Goh.

* ANZ sees lower public consumption and investment, and moderation in export growth affecting GDP expansion next year

* 2018 CPI forecast lowered to 0.7% from 2.7% previously following removal of GST; CPI seen at 1.7% in 2019 versus 2.9% previously

* Government expected to maintain previous administration’s fiscal consolidation path

* Central bank expected to keep benchmark interest rate at 3.25% for rest of year; appointment of new governor not expected to materially change central bank’s reaction function

* Note: Malaysian Governor departure adds uncertainty to economy in flux - Bloomberg