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BNM to stay on the sidelines, BSP hints at rate cuts

Inflation in Malaysia fell again last month, which supports our view that the central bank’s tightening cycle is now over. But with growth likely to hold up better than elsewhere in the region, and inflation set to rise again next year on the back of cuts to government food and fuel subsidies, we think Malaysia will be one of the few countries in the region not to cut interest rates over the coming year.

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