US-M’sia yield gap likely to narrow


MARC Ratings Bhd chief economist Ray Choy.

KUALA LUMPUR: Anticipations of more interest rate cuts by the US Federal Reserve (Fed) in 2025 under the new US government administration, is likely to see a further decrease in the yield differentials between the United States and Malaysia, thus, potentially making local assets such as local bonds more attractive to investors.

This could also be a supportive variable for the ringgit recovery moving forward.

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