Inflationary pressures likely to ease further in Malaysia in coming months: Barclays

Quotes from Barclays Capital:

-Inflationary pressures are likely to ease further in Malaysia in coming months, though this is unlikely to affect the monetary stance. BNM in its GDP release noted that falling oil prices should support consumption, and we expect BNM to mark lower its inflation forecasts considerably from the current 4-5% in March, when the annual report is released.

-We recently lowered our 2015 inflation projection to 2.1%, considering the fall in retail pump prices in Q1 so far. We expect BNM to keep rates on hold through most of 2015, and forecast only one 25bp rate hike in Q4 15, after the US Federal Reserve starts its own rate hike cycle.