0904 GMT - Bank Negara may maintain its policy rate at 3.0% throughout 2025, as inflation and economic conditions align with UOB's expectations. Keeping the policy rate unchanged for an extended period will allow policymakers to assess the impact of U.S. trade and tariff policies on domestic growth, inflation and the financial system in near term, economists Julia Goh and Loke Siew Ting say in a note. They expect Malaysia's inflation to rise above 2.0% by mid-year, following higher core inflation in January. Key risks include spillover effects from domestic policy changes, global trade tensions and volatility in commodity prices and forex markets. UOB maintains its 2025 inflation forecast at 2.3%, higher than the 2024 full-year inflation of 1.8%. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
February 21, 2025 04:04 ET (09:04 GMT)
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