By Kuala Lumpur Newsroom
Nikkei Markets
KUALA LUMPUR (Nov 15) -- Malaysian ringgit advances 0.3% to 4.1820 against dollar, hovering close to its highest since November 2016. Nomura says Bank Negara Malaysia likely to hike rates by 25 basis points to 3.25% in January, after it signaled policy normalization at its policy meeting last week. Says, probability of rate hikes has increased after BNM points to rising financial-imbalance risks and as central bank seeks to normalize policy from its accommodative stance. Estimates GDP growth tracking at 6.3% in 3Q, further pick-up from 5.8% in 2Q, helped by strong export growth and domestic demand. Says headline inflation of 4.3% in September likely to be peak, but sees upside risks from continued rise in oil prices. Forecasts average inflation of 3.8% for 2017, inside BNM 3.0%-4.0% range. House sees ringgit at 4.25 at end of year and 4.19 at 2018 end.
- By Kuala Lumpur Newsroom; kleditorial@nikkeinewsrise.com; +60320267363
- Edited by Nimesh Vora
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