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Bank Negara holds benchmark interest rate at 1 75%, warns of downside risks to economy

20 Jan 2021 / 22:17 H. PETALING JAYA: Bank Negara Malaysia’s (BNM) Monetary Policy Committee has retained the Overnight Policy Rate (OPR) at 1.75%, citing the recovery in the global economy led by improvements in manufacturing and export activity. However, it noted that the recent resurgence in Covid-19 cases and subsequent containment measures have affected activity in several major economies. “The expedited rollout of mass vaccination programmes, together with ongoing policy support, is expected to lift global growth prospects going forward. Financial conditions also remain supportive,” the committee said in a statement. It said the overall outlook remains subject to downside risks, primarily if there is further resurgence of infections and delays in mass inoculation against the pandemic.

Palm oil prices have peaked, to average RM3,050 a tonne this year: Fitch Solutions

19 Jan 2021 / 21:17 H. A tractor grabber collects palm oil fruits at a plantation in Pulau Carey. the research unit sees prices remaining below 2021 levels out to 2025, which is still higher than 2015-2019 averages, as palm oil production will slow down significantly in the coming years – REUTERSPIX PETALING JAYA: Palm oil prices are expected to moderate to an average of RM3,050 a tonne this year, compared with an average of RM2,580 in 2020 and the current levels of RM3,527, according to a forecast by Fitch Solutions. It believes prices have peaked in early January – barring a further rally in the soybean complex – on the back of the impressive run-up in the second half of 2020 that sent palm oil prices to their highest levels since 2011.

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