The Malaysian central bank confirmed today that it has been intervening in foreign exchange markets to support the ringgit, which is now close to its lowest level since the Asian financial crisis. Despite weak economic growth and subdued inflationary pressures, we think the prospect of further currency weakness will deter BNM from cutting interest rates over the coming year. In contrast, most other forecasters are expecting to see at least one rate cut by the end of 2017.
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