MGS yield seen giving room for OPR cut


While believing the current OPR of 1.75% is supportive of the nation’s growth, RHBAM fixed income chief investment officer Michael Chang(pic) said further rate cuts are very much contingent on the outlook of the Malaysian economy and the gross domestic product results for the second quarter of 2020, which is due for release on Aug 12.

KUALA LUMPUR: The 10-year Malaysian Government Securities (MGS) yield, which stands at an attractive level of 2.67% currently, gives ample room for Bank Negara to cut the overnight policy rate (OPR) by at least another 25 basis points (bps) by year-end, said RHB Asset Management Sdn Bhd (RHBAM).

While believing the current OPR of 1.75% is supportive of the nation’s growth, RHBAM fixed income chief investment officer Michael Chang said further rate cuts are very much contingent on the outlook of the Malaysian economy and the gross domestic product results for the second quarter of 2020, which is due for release on Aug 12.

“If the economic data is weak, the capacity for Bank Negara to impose further rate cuts exist, as the real rates for Malaysia is still positive at present, ” he told Bernama in an e-mail interview.— Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Banking , Bank Negara , OPR , interest rate , RHB , Michael Chang ,

   

Next In Business News

No trading for KLTM next week
CPO futures likely to experience technical correction next week
Essential economic contributors must be protected
Oil price hits multi-year highs in third weekly gain on demand recovery
Retail investor base doubles in Europe as US "meme" stock mania spreads
INSIGHT-GameStop lures Amazon talent with grand plans and no frills
Tin's ascent to decade highs fuelled by supply fears
GLOBAL MARKETS-Stocks set record highs as bond yields slide
Riding the commodities boom
Short Position - Green challenges, inflation, margin squeeze

Stories You'll Enjoy


Vouchers