Bank Negara Malaysia
Investors Focused on Monetary Policies, Inflation, and Biden’s State of the Union Address Tonight
March 7, 2024
Scheduled monetary policy reviews at the European Central Bank, National Bank of Serbia, and Central Bank of Malaysia left key interest rates unchanged at 4.5%, 6.5%, and 3.0%, respectively. No changes had been expected. Bank of Japan Board member Nakagawa made remarks affirming that Japan’s economy is closer to achieving the central bank’s inflation target […] More
Softer World Growth Troubling Stocks
September 7, 2023
In the Federal Reserve Bank Beige Book of regional economic conditions released yesterday, only the Dallas district had better than modest growth, and even that regional economy was tarnished by uneven activity across sectors. Four districts stagnated, and the Philly district experienced a modest contraction of activity. Second-quarter GDP in the euro area has been […] More
Malaysian Central Bank Rate Hike Had Not Been Expected
May 3, 2023
As at the Central Bank of Colombia last Friday and the Reserve Bank of Australia yesterday, officials at Bank Negara Malaysia today sprang a 25-basis point rate hike surprise on unsuspecting market analysts. Malaysia’s central bank policy interest rate now becomes 3.0%, completely reversing the 125 basis points of rate reduction in 2020 when the […] More
Continuing Strains on Regional Banks Even As Fed Prepares to Hike Policy Rate to 15-Year High
May 3, 2023
An as-expected 25-basis point hike of the federal funds target to 5.00-5.25% would lift the range-floor to its level just before the subprime mortgage debt crisis emerged in the summer of 2007. Investors are hoping for clarified guidance on where Fed monetary policy is likely to go from there, how the Fed plans to protect […] More
Equities and Dollar Slip, Japanese Growth Revised Lower
March 9, 2023
With Fed Chairman Powell’s two-day testimony over and the Beige Book published, the dollar fell overnight by 0.7% against the yen, 0.3% versus the Swiss franc, kiwi, Aussie dollar and sterling and 0.2% relative to the euro and Chinese yuan. Powell left scant doubt that multiple additional interest rate hikes like ahead, and the Fed’s […] More
Contrasting Concerns Among Central Bankers and Financial Market Investors
January 19, 2023
As often is the case, the World Economic Forum in Davos has thrust central bank policies into the spotlight. The primary concern of monetary policymakers remains inflation. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis endorsed a need to crank the federal funds rate target above 5.0%. European Central Bank President […] More
Bank Negara Malaysia
September 8, 2022
Malaysia’s central bank policy rate was raised by 25 basis points at a scheduled monetary policy review. Such was the third such increase since May, lifts the rate to 2.50%, and brings the reversal of pandemic related relief to 75 bps of the 125 basis points of reduction in 2020. Consumer price inflation increased a […] More
Malaysia’s First Central Bank Rate Hike Since 2018 Surprised Analysts
May 11, 2022
There’s been a 25-basis point increase in Bank Negara Malaysia’s policy interest rate that was not foreseen by analysts. This hike to 2.0% from 1.75% marks the first increase since January 2018. Malaysian CPI inflation in April of 2.2% had been a tad low than forecast and matched the lowest level since August 2021. A […] More
Investors Believe that Today’s U.S. CPI Report Will Show a Lower Inflation Rate
May 11, 2022
Ahead of April CPI figures due at 12:30 GMT (08:30 EDT), U.S. stock futures are pointing to a rise of 1.0% or more. Analysts are predicting that on-year inflation will be closer to 8.0% than March’s 483-month high of 8.5%. It is an act of faith based in part on base effects as high month-on-month […] More
Energy Prices Soaring as Both Russia and Ukraine Take a Beating
March 3, 2022
The price of West Texas Intermediate crude oil jumped another 3.5% overnight and has risen 52% since the end of 2021. The dollar jumped 11% overnight against the Russian ruble. Trading on the Russian stock exchange remains suspended. Russia’s banking system is gripped by an extreme liquidity shortage, and the country’s sovereign debt rating has […] More
