Malaysia’s M3 and loan to grow at a healthy pace of 5.5% and 5.2% in 2019, says RHB Research

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KUALA LUMPUR (Feb 4): RHB Research Institute Sdn Bhd expects Malaysia’s M3 and loan to grow at a healthy pace of 5.5% and 5.2% in 2019, from 8% and 5.6% respectively for 2018. This should keep demandpull price pressure contained.

In a note today, the research house said it expects headline inflation to be within a range of 1.5-2.5% in 2019, from 1% for 2018, due to the increased volatility of oil prices in recent months.

“Malaysia’s M3 growth ended 2018 at the fastest pace in five years, supported by higher demand for funds from the public sector and foreign operations.

“Separately, loan growth lost some steam and retraced in end-2018 on lower corporate loan demand. Deposit growth, in contrast, picked up further,” it said.

RHB Research maintained its view for the central bank to keep the overnight policy rate (OPR) unchanged at 3.25% for 2019.