All 11 economists polled by Reuters forecast Bank Negara to hold its key rate at 3% tomorrow, as a cut to follow its July easing would expose the ringgit to more pressure. In November, the central bank stepped in to discourage ringgit trade in the non-deliverable forwards (NDF) market, and later introduced measures to boost onshore ringgit trade. Economists were split on whether Bank Negara will keep its overnight policy rate steady throughout 2017, with some predicting a cut later in the year. Bank Negara “missed the best window” to cut its key rate further in November, said Irvin Seah, an economist at DBS bank. Nomura, however, thinks the central bank will announce a rate cut later this year.

Source: The Star January 17, 2017 22:59 UTC