KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
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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