He projects that the gross domestic product (GDP) stays at 4.5% to 5.5% and the inflation rate at 2% to 3.5%.
“This suggests that economic assessment has not deviated materially despite the challenging outlook due to tariff measures by the US new administration,” the economist told Bernama.
Afzanizam also said that the overnight policy rate could stay at 3% and the interest rate differential with the US rate should narrow further.
“The US Federal Reserve (Fed) is expected to reduce the Fed Fund Rate (FFR) twice this year based on the latest projection by the Fed staff.
“Hence, it should provide support to the ringgit, perhaps in the second half of the year, as we get more clarity on US policies,” he added.
The local note depreciated to 4.4325/4.4370 against the greenback from last Friday’s close of 4.4180/4.4220.
Meanwhile, the ringgit was traded lower against a basket of major currencies.
It depreciated against the euro to 4.8039/4.8088 from 4.7843/4.7886 at last Friday’s close, weakened against the British pound to 5.7441/5.7499 from 5.7151/5.7203 and eased against the Japanese yen to 2.9631/2.9663 from 2.9574/2.9602.
The local note was mostly lower against Asean currencies.
It edged down against the Singapore dollar to 3.3148/3.3184 from 3.3081/3.3114 at the previous close, narrowed against the Philippine peso to 7.73/7.74 from 7.70/7.71, and weakened against the Thai baht to 13.0849/13.1043 from 13.0436/13.0608.
The ringgit appreciated against the Indonesian rupiah to 267.5/267.9 from 267.7/268 at last Friday’s close. - FMT
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.