Malaysian industrial production growth likely to have stayed same in September, BNM to stand pat

Malaysian industrial production data for the month of September is set to be released this week. According to a DBS Bank research report, the industrial production growth is likely to have remained the same at 2.2 percent year-on-year. This should be more reflective on the underlying demand against the current global backdrop.

On that basis, the Malaysian central bank is expecting growth to decelerate in the quarters ahead. This makes for a stable monetary policy stance, especially when inflation has stayed benign.

“We expect BNM to keep the Overnight Policy rate (OPR) at 3.25 percent in the coming policy review”, added DBS Bank.