Goldman Sachs said that although Bank Negara Malaysia recently released hawkish signals, it is likely that the bank will not tighten monetary policy at the November interest rate meeting due to uneven economic recovery and moderate inflation. A team of Goldman Sachs economists led by Chris Bo said, “The statement is mainly aimed at preserving policy flexibility, rather than implying that interest rates will be raised at the next meeting. Once strong economic growth eventually triggers widespread inflationary pressure, Bank Negara Malaysia can respond accordingly.” Overall inflation and core inflation are still below the long-term average. Bank Negara Malaysia has room to wait and see. It is expected to wait until the January meeting next year to raise the benchmark interest rate by 25 basis points to 3%; this forecast revises Goldman Sachs's previous judgment that interest rates remained unchanged for a long time.

Goldman Sachs said that although Bank Negara Malaysia recently released hawkish signals, it is likely that the bank will not tighten monetary policy at the November interest rate meeting due to uneven economic recovery and moderate inflation. A team of Goldman Sachs economists led by Chris Bo said, “The statement is mainly aimed at preserving policy flexibility, rather than implying that interest rates will be raised at the next meeting. Once strong economic growth eventually triggers widespread inflationary pressure, Bank Negara Malaysia can respond accordingly.” Overall inflation and core inflation are still below the long-term average. Bank Negara Malaysia has room to wait and see. It is expected to wait until the January meeting next year to raise the benchmark interest rate by 25 basis points to 3%; this forecast revises Goldman Sachs's previous judgment that interest rates remained unchanged for a long time.