A healthy economic outlook is the primary reason why BNM decided to keep its key policy rate unchanged at 3% for the ninth consecutive time last Wednesday even though the annual inflation rate has now dropped to just 1.8%. In its post-meeting statement, Malaysia’s central bank cited a positive economic growth outlook and steady inflation but issued a warning about potential currency volatility. ‘The latest indicators point towards sustained strength in economic activity driven by resilient domestic expenditure and higher export activity’, it said in a statement.
Kar Yong Ang, a financial market analyst at Octa Broker, had this to say: ‘While BNM doesn’t prioritize currency stability, the prevailing financial market uncertainty has prompted the central bank to adopt a cautious approach. For instance, the bank acknowledged that the outcome of the U.S. elections could introduce increased volatility to the ringgit in the short term. However, I personally believe that USDMYR is unlikely to rise much above 4.50 as the narrowing interest rate differential between the U.S. and Malaysia remains a positive factor for the national currency’.Hashtag: #Octa
The issuer is solely responsible for the content of this announcement.
Octa
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.
In the APAC region, Octa received the ‘Best Trading Platform Malaysia 2024’ and the ‘Most Reliable Broker Asia 2023’ awards from Brands and Business Magazine and International Global Forex Awards, respectively.
