Carry trade opportunity opens on central bank’s rate-cut calls

The central bank is now expected to keep rates on hold until the end of 2026, according to a median forecast of economists surveyed by Bloomberg. — Bloomberg

KUALA LUMPUR: The market is pricing in a Bank Negara Malaysia (BNM) interest-rate cut in coming months while economists expect a hold, presenting a potential opportunity for a carry trade.

The central bank cut rates by a quarter point last month, its first easing since 2020. A solid economy and better-than-expected US tariff rates may allow it to stop there for now.