Friday 29 Mar 2024
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KUALA LUMPUR (Jan 2): RHB Research Institute Sdn Bhd said the growth in broad money supply or M3 inched higher to 5.2% year-on-year in November, as demand for funds from government operations gained pace.

In an economic update today, the research house said it envisages M3 growth to pick up to 5.0% in 2018, from the +4.8% estimated for 2017 – this is in line with sustained economic growth.

“Loans growth would likely register a healthy growth of 6.0% in 2018, from 5.0% in 2017 (2016: 5.3%), on higher business loans due to an uptick in economic activity,” it said.

“We envisage inflation to normalise to 2.7% in 2018, from 3.8% expected in 2017 (2016: +2.1%).

“We are of the view that Bank Negara Malaysia (BNM) would increase the overnight policy rate (OPR) by 25 basis points to 3.25% this year, after maintaining rates at 3% in 2017,” it said.

RHB Research said this comes as major global central banks are increasingly inclined to tighten monetary policies this year, amid stronger growth in advanced economies.

 

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