KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The Bangko Sentral ng Pilipinas (BSP) is expected to deliver another interest-rate cut on Thursday, as policymakers seek to cushion the economy from US tariff pressures while inflation remains subdued.
Market Expectations
Consensus: All 26 economists surveyed by Bloomberg forecast a 25-basis-point cut, lowering the policy rate to 5% — the lowest in nearly three years.
Governor’s signal: Eli Remolona flagged earlier this month that easing became “more likely” after inflation hit a near six-year low, with scope for further cuts in 4Q25 and into 2026.
Regional trend: The Philippines joins peers like Indonesia and New Zealand, both of which have tilted dovish in response to trade-war fallout.
Inflation and Currency Outlook
Inflation: Below BSP’s 2–4% target for five straight months; expected to stay within a “comfortable range.”
Peso strength: Up around 2% in August, the best performer in emerging Asia, easing pressure from imported inflation.
Analyst view: OCBC expects two more rate cuts this year, citing manageable inflation and currency resilience.
Growth Pressures Mount
GDP: Q2 growth at 5.5%, slightly above Q1’s 5.4%, but momentum is fragile.
Tariffs: The US raised levies on Philippine exports to 19%, a key drag on industry, investments, and trade.
Forecast: Analysts see full-year GDP growth at 5.5%, at the low end of Manila’s official target range.
Fitch Solutions (BMI): Warns of “underperformance” ahead as domestic activity softens and export front-loading fades.
Policy Implications
BSP has space to prioritize growth support over inflation risks, given stable prices and a firm peso.
A pro-growth stance is expected to continue into 2H25, with further easing possible if trade headwinds intensify.
Markets will closely watch the 2:30pm policy announcement and subsequent briefing in Manila for signals on the easing trajectory.
Comments
Post a Comment