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The Week Ahead: Bank Negara s monetary policy, China s 4Q GDP, US politics in focus

With the Movement Control Order (MCO) having been implemented again, Bank Negara Malaysia’s first monetary policy committee meeting of the year will be in the spotlight this week. Although economists see a less severe economic impact from this round of MCO, they do not rule out another interest rate cut at the monetary policy committee meeting on Jan 20. “In view of the worsening pandemic, tighter containment measures and weaker growth outlook, we have pencilled in another 25-basis-point (bps) policy rate cut. This will bring the overnight policy rate to a new low of 1.5%,” UOB Global Economics & Markets Research said in a report last Friday.

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