KUALA LUMPUR (Nov 1): RHB Research Institute Sdn Bhd said it envisages Malaysia’s loan and M3 growth to strengthen further in 2019.

In an economic update today, the research house said Malaysia’s M3 growth eased further in September, dragged by a lower demand for funds from private sector and foreign operations.

“Separately, loan growth trended higher, supported by stronger corporate loan demand, while deposit growth increased in tandem,” it said.

It said strengthening loan and M3 growth in 2019, however, is unlikely to result in any demand-pull price pressure, as core inflation remains subdued.

“Similarly, we expect overnight policy rate to be kept unchanged at 3.25% for the rest of 2018,” it said.