Recommend Us | About Us | Back to

News | Financial Calculator | Home Financing | Archived News |


  Welcome to Bernama Banking & Finance Special Page     
BNM likely to cut interest rate in next 3-6 months - economist
Last update: 06/08/2019

Dr Donald Hanna

KUALA LUMPUR, Aug 6 (Bernama) -- Bank Negara Malaysia (BNM) may cut its key interest rate in the next three to six months, partly because the world economy has worsened following the escalating United States (US)-China trade dispute, said CIMB Group chief economist Dr Donald Hanna.

He said there was about a 60 per cent chance of another rate cut, unfortunately, on the back of the likely increase in tariffs on Chinese products in September by the US, which was an external blow to an open economy like Malaysia.

The next three to six months, he said,  would also depend on the US Federal Reserve's plan on its interest rate policy and impact of the US tariff on Chinese products.

"Other Asian central banks will soon follow the policy direction of US interest rates movement," he told reporters after the ASEAN+3 Regional Economic Outlook 2019 Roadshow here, today.

In May this year, BNM reduced the overnight policy rate to three per cent from 3.25 per cent previously, the first time it has cut the rate since July 2016.

Previously, US President Donald Trump said he will impose a 10 per cent tariffs on another US$300 billion (US$1=RM4.18) of Chinese-made products starting Sept 1, which would effectively put a tax on all Chinese goods coming into the US.



Bank Muamalat's Mohd Arfaizal emerges champion of BNM's elocution contest
Dryer cabin project generate economy of fishermen in Kampung Talun, Bongawan

Bank Muamalat collaborates with Alibaba cloud to expedite financial inclusion

Insurance coverage for longhouses
AIA appoints Ben Ng as CEO

CIMB Islamic, Takaful Ikhlas partnership eyes RM168 mln of business

100 Yen3.9244/9298
Source: Bank Negara Malaysia

Reduction in the overnight policy rate (OPR) by Bank Negara Malaysia would be good for consumer spending and investment;
Not sure
  Main | News | Insurance

© 2019 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy| Security Policy
This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA.
Best viewed in Firefox 8.0 & Internet Explorer 8.0 with 1024 x 768 resolution