Bank Negara Malaysia likely to keep the policy rate on hold

Bank Negara Malaysia (BNM) will announce its monetary policy decision on 7 May. It is expected to keep the overnight policy rate (OPR) unchanged at 3.25%. The rate was last raised in July 2014. 

The central bank removed the word "appropriate" from its monetary policy statement released on 15 March, replacing it with "supportive" to describe its monetary policy stance. 

It also appeared comfortable with its existing growth and inflation forecasts at the annual briefing on 11 March. It is taking a wait-and-see approach, but that its focus is shifting more towards growth.

"We expect inflation to have picked up in April on GST implementation, but to take a backseat to the growth outlook", says Standard Chartered.