The Bank Negara Malaysia logo is seen at its headquarters in Kuala Lumpur January 23, 2020. — Picture by Ahmad Zamzahuri
In a research note, RHB said further revision was possible, depending on how the investment bank perceived the likelihood of a recovery ahead.“Meanwhile, given the sharply moderating growth environment and weaker inflation projection, we reiterate our call for monetary policy to be reduced by another 50 basis points , bringing the interest rates down to 2.0 per cent, similar to the level seen during the global financial crisis of 2007-2009,” it said.
Consequently, the current account surplus is projected to narrow to one to two per cent of GDP in 2020 . “However, these will be offset by significant fiscal and monetary interventions that should help the economy once the containment is successful,” it said.