KUALA LUMPUR: JP Morgan has maintained its expectations for further policy easing in the second-quarter of this year with 25 basis points cut.
Analyst Nur Raisah Rasid said should fiscal policy step up materially beyond the investment bank’s expectations, there would be less urgency for monetary accommodation by Bank Negara.
“Even as fiscal policy steps up, in our view, further monetary policy support for the domestic economy could be expected in the near term.
“While cabinet officials have yet to be announced following the appointment of Tan Sri Muhyiddin Yassin as Malaysia’s eighth prime minister over the weekend, there seems to be a clearer path that includes a more supportive fiscal policy,” she said in a statement today.
Meanwhile, Malaysia’s trade surplus in January 2020 increased 4.2 per cent to RM12 billion from RM11.52 billion recorded in a year ago.
“This was the highest monthly trade surplus for January since January 2011, and the 267th consecutive month of surplus,” the International Trade and Industry Ministry (Miti) said in a statement today.
It said exports totalled RM84.08 billion in January 2020, registering a marginal decrease of 1.5 per cent from RM85.41 billion in January 2019, while imports slipped by 2.4 per cent to RM72.08 billion from RM73.89 billion previously.
“Total trade amounted to RM156.17 billion, a contraction of two per cent from (RM159.3 billion in) January 2019,” it added.