KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
The Bank of England's split 6-3 vote to hold its key interest rate signals that a rate cut at the February meeting is a strong possibility, according to Suren Thiru, economics director at the Institute of Chartered Accountants.
Key Insights
Cautious Approach to Rate Cuts
- The Bank of England is expected to proceed cautiously with interest rate cuts next year due to rising inflation risks both domestically and internationally.
- "Rate setters are likely to take baby steps in cutting interest rates," said Thiru, emphasizing the challenges posed by complex inflation dynamics.
Inflation Challenges
- While inflation is expected to drift higher, it complicates the timing and pace of policy loosening, leaving the central bank with limited flexibility.
February Rate Cut in Focus
- The 6-3 vote suggests a rate cut could occur in February, but the pace and size of future cuts remain uncertain amid growing economic risks.
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