Governor Diokno was pretty emphatic earlier this week when he said that the central bank (BSP) had “absolutely” “done more than enough” this year. In response we are taking out the interest rate cut we originally had pencilled in for December. But with growth likely to come in below the government’s target and inflation set to remain very low, we still expect more easing in 2020. Meanwhile, today’s decision by Malaysia’s central bank (BNM) to cut its statutory requirement ratio (SRR) is a response to the recent slowdown in credit growth and the worsening outlook for the economy.
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