Lower interest rate regime to support loans growth


Kenanga Research said that looking ahead, moderation in loans is expected to continue given the rising pandemic and economic uncertainty.

KUALA LUMPUR: Kenanga Investment Bank Research expects accommodative interest rates will continue to support a resilient household segment, mitigating the moderation in business spending.

It said on Thursday due to the banks’ modest target for 2020 (after the recent results season), it expects system loans to end at 4-4.5% YoY (more on downside bias) driven by resilient household (5% to 5.4%) and business (2% to 2.5%) coming from a fiscal push expected in 2H 2020.

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Kenanga Research , Maybank , CIMB , household , business , loans

   

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