(July 8): The case is growing for Bank Negara Malaysia to bolster the economy with another interest-rate cut -- and to provide some much-needed encouragement for inflows to the ringgit bond market. The central bank’s review this week will be scrutinized by global funds, with any hint of a dovish tilt likely to rekindle interest in Malaysian bonds. While Tuesday’s policy review is unlikely to bring an immediate cut in rates, the policy statement will be parsed for indications that a lower benchmark is on the horizon. Three forecast a 25-basis point cut. To be sure, even if the economy continues to slow, Bank Negara may try to stand pat until there’s greater clarity on how deep any U.S. interest-rate cuts will be.

Source: The Edge Markets July 07, 2019 07:07 UTC