Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 21): RHB Research Institute Sdn Bhd said Malaysia's headline inflation rate eased for a second straight month to 3.4% year-on-year in November.

In an economic update today, the research house said this was mainly due to a slower rise in food and transportation costs amid higher base effects.

It said that overall, the headline inflation rate is on track to achieve our 2017 estimate of 3.8%, up from +2.1% in 2016.

“As for 2018, stable fuel prices and a stronger ringgit should translate into lower import prices.

“As a result, we expect inflation to moderate to 2.7% next year,” it said.

The research house added that it believes Bank Negara Malaysia (BNM) would likely increase the overnight policy rate (OPR) by 25bps to 3.25% next year, in tandem with monetary policy tightening by major global central banks and as the Malaysian economy strengthens further.

“This is also supported by the central bank’s hawkish tone in its latest monetary policy statement,” it said.

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