Latest news with #MonetaryPolicyMeeting
New Straits Times
08-07-2025
- Business
- New Straits Times
Ringgit eases against US dollar on US tariff adjustments
KUALA LUMPUR: The ringgit closed lower against the US dollar as market sentiment weakened amid the United States' (US) latest reciprocal tariff policy adjustments, ahead of Bank Negara Malaysia's (BNM) Monetary Policy Meeting (MPC) tomorrow. At 6pm, the local note eased to 4.2365/2445 versus the greenback from Monday's close of 4.2310/2400. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit depreciated to as low as RM4.2470 to the US dollar during the morning session as worry over the impact of the 25 per cent import tariff by the US has led traders and investors to remain cautious. However, in the afternoon, the ringgit improved to RM4.2358. "Generally speaking, there is still room for discussion and negotiations, and the Malaysian government continues to opt for a diplomatic solution as indicated in the Ministry of Investment, Trade and Industry's (MITI) press statement," he told Bernama. The US has imposed a higher tariff of 25 per cent on all Malaysian products sent into the country, separate from all sectoral tariffs, effective Aug 1 this year. This is one percentage point higher compared to what was announced in April. MITI said in a statement that Malaysia is committed to continued engagement with the US towards a balanced, mutually beneficial and comprehensive trade agreement. "Tomorrow, the main focus is on the BNM's MPC meeting where economists are quite divided on whether the central bank would resort to a 25 basis point cut in the Overnight Policy Rate (OPR). "In our view, we foresee the BNM would be inclined to reduce the OPR by 25 basis points in order to provide support to domestic demand. As such, dollar-ringgit is expected to maintain its narrow range as traders and investors remain cautious," said Mohd Afzanizam. Meanwhile, Kenanga Investment Bank Bhd retained its year-end US dollar-ringgit forecast of 4.08, supported by sound domestic fundamentals. Eroding confidence in US fiscal management is driving capital flows towards the European Union (EU) and reform-oriented emerging markets. "Malaysia, with its macro stability and steady foreign direct investment (FDI) inflows, stands to gain from this rebalancing. "A US Federal Reserve (Fed) pivot to interest rate cuts could further lift the ringgit," said Kenanga in its research note today. As for potential US tariffs targeting BRICS-aligned economies, the investment bank said any escalation could accelerate moves to develop alternative financial systems. "Whether BRICS can parlay this into a more coherent geopolitical front remains to be seen, but their response may help reshape the future of global economic and financial architecture," it added. At the close, the ringgit traded lower against a basket of major currencies except the Japanese yen. The local currency appreciated versus the Japanese yen to 2.8970/9026 from 2.9091/9155 at Monday's close. It eased against the British pound to 5.7591/7700 from 5.7563/7685 yesterday and declined vis-à-vis the euro to 4.9745/9839 from 4.9647/9752 previously. Meanwhile, the ringgit traded lower against its ASEAN counterparts. It declined versus the Thai baht to 13.0182/0488 from 12.9837/13.0173 at yesterday's close, and slipped vis-à-vis the Singapore dollar to 3.3152/3217 from 3.3096/3172 on Monday. The ringgit weakened against the Indonesian rupiah to 261.4/262.0 from 260.5/261.2 previously, and edged down versus the Philippine peso to 7.51/7.53 from 7.46/7.48 at Monday's close.
Business Standard
17-06-2025
- Business
- Business Standard
USDJPY stays flat on BoJ decision to leave rates unchanged
The Japanese yen is seen little changed near a one-week low against the dollar on Tuesday after BoJs Policy Board, at the Monetary Policy Meeting held today, decided, by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0.5 percent. The Bank further said it will reduce the planned amount of its monthly purchases of JGBs so that it will be about 2 trillion yen in January-March 2027. The amount will be cut down, in principle, by about 400 billion yen each calendar quarter until January-March 2026, and by about 200 billion yen each calendar quarter from April-June 2026. Meanwhile, broad strength in dollar overseas is also seen limiting any minor uptick in the yen. The dollar index is currently quoting at 97.75, up 0.20% on the day. Meanwhile, USDJPY pair is seen trading at 144.72, almost flat on the day.
Time of India
06-06-2025
- Business
- Time of India
RBI MPC Meet Live: All eyes on Malhotra & co amid expectations of third consecutive rate cut this year
06 Jun 2025 | 07:14:20 AM IST RBI MPC Meet Live News Updates: The Reserve Bank of India (RBI) is set to announce its bi-monthly monetary policy today at 10 AM. RBI Monetary Policy Meeting: The Reserve Bank of India (RBI) will announce its bi-monthly monetary policy today, with expectations running high for another rate cut to boost economic growth, which has been facing pressure from global trade Sanjay Malhotra is set to present the monetary policy statement at 10 am, capping the three-day deliberations of the Monetary Policy Committee (MPC) that began on June 4. The central bank has already slashed the key repo rate by 25 basis points each in February and April this largely anticipate another 25 basis points cut, continuing the current easing cycle. However, a research note from the State Bank of India has projected a sharper cut of 50 basis points, citing the need for stronger policy support amid weakening global trade a statement on Thursday, the Reserve Bank noted that the impact of the 50-bps cumulative cut since February has already prompted several banks to lower their repo-linked external benchmark-based lending rates (EBLRs) and marginal cost of funds-based lending rates (MCLR). A reduction in the repo rate generally leads to lower lending rates, translating into reduced EMIs for both households and six-member MPC includes three RBI officials—Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv Ranjan—and three external members appointed by the government. The external panelists are Nagesh Kumar, Director-General of the Institute for Studies in Industrial Development; economist Saugata Bhattacharya; and Professor Ram Singh of the Delhi School of Economics. Show more The Monetary Policy Committee (MPC) is expected to maintain its focus on supporting the ongoing recovery in economic growth momentum, Careedge Ratings said in a data intelligence firm added in the report that the rate-cut cycle that began in February is likely to continue, with a further 25-bps reduction in the repo rate expected at the June meeting, while retaining an "accommodative stance"."The healthy growth momentum and the already easing money market rates may prompt the RBI to take incremental steps in policy easing, reducing the likelihood of a larger rate cut in this meeting," CareEdge said in the report further added, "We anticipate the policy statement to strike a dovish tone while remaining cautious about evolving global developments."The report cites the ease in retail inflation, saying that the Consumer Price Index (CPI) in April fell to 3.16 per cent, marking a six-year low. RBI MPC Meet Live: In the April meeting, the MPC unanimously decided to slash rates by 25 bps for the second consecutive time, from 6.25% to 6.00%, while changing the stance to 'accommodative' from 'neutral'. RBI MPC Meet Live: The MPC consists of three members from the RBI and three external members appointed by the members are: Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv external members are: Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi; Shri Saugata Bhattacharya, Economist, Mumbai; and Professor Ram Singh, Director, Delhi School of Economics, Delhi. Governor Sanjay Malhotra will deliver the policy statement at 10 am, following the conclusion of the Monetary Policy Committee's (MPC) three-day meeting that began on June 4. Good morning, ET readers! The Reserve Bank of India (RBI) will be announcing its bi-monthly monetary policy today, with markets widely anticipating another rate cut to support economic growth amid ongoing global trade RBI had earlier lowered the key repo rate by 25 basis points in both February and April.
IOL News
08-05-2025
- Business
- IOL News
Possible interest rate cuts as inflation slows in South Africa
Despite a slight rise in the cost of living for April, economists foresee potential interest rate cuts, offering hope for South African consumers. Image: Ayanda Ndamane / Independent Newspapers. While the rate of increases in the cost of living may have ticked somewhat higher for April, some economists are anticipating a different sort of good news: potential interest rate cuts. Statistics South Africa will release its consumer price index data for April on May 21 – the same day as Budget 3.0. This information will be taken into consideration at the next Monetary Policy Meeting of the South African Reserve Bank. That committee will announce its decision on interest rates a week later. Investec chief economist, Annabel Bishop, said that there are likely to be two interest rate cuts this year of 0.25 percentage points. This, however, depended on whether the US Federal Reserve limits its cutting cycle to two drops of 0.25 percentage points each instead of the anticipated three. Old Mutual chief economist, Johann Els, told IOL that the South African Reserve Bank is likely to be conservative given current geopolitical issues. However, the low inflation rate could lead several committee members to cut, especially given the local currency's reversal of more than R19 to the dollar in the first week of last month, dropping fuel prices, and repeated downward revisions in inflation from the central bank. Although the cost of living rose slightly in April, some economists expect good news: possible interest rate cuts. Image: Stats SA/SARB/Investec 'I think the governor is going to be still very cautious and worried about global risks. But I think the balance of the committee might shift to a cut… There is a window of opportunity. But still, I think it's a 50-50 chance for a rate cut in May,' said Els. Els added that there was, however, room for a cumulative 0.75 percentage point cut currently. 'If they don't cut in May, they will definitely cut in July.' Bishop noted that the rate of increase in the cost of living is at its lowest point currently in the inflation cycle at 2.7%. This, she pointed out, compares with the 7.8% year-on-year rate seen in July 2022, although its move to the lower end of the South African Reserve Bank's target of 3% to 6% was 'quite uneven'. Investec's expectation for April is a rate of nearer to 3%. 'The overall moderation in inflation was caused by slowing inflationary pressures as fuel prices fell markedly in periods, along with lower agricultural price pressures, while the rand saw periods of strength and demand pressures were weak overall,' said Bishop. Bishop added that the consumer price index, which averaged 4.4% last year, is expected to average near 3.5% for 2025 on a year-on-year basis, which she said is 'a very modest outcome'.
Arab News
23-04-2025
- Business
- Arab News
Pakistan central bank expected to cut key interest rate— survey
ISLAMABAD: Pakistan's central bank is expected to slash the policy rate in its upcoming Monetary Policy Meeting (MPC), a leading brokerage firm said on Wednesday, saying decreasing global oil prices and higher remittances make a strong case for a cut. The State Bank of Pakistan (SBP) kept the interest rate unchanged at 12 percent in its last MPC meeting in March. The central bank put a hold on slashing the interest rate after it made a series of cuts totaling 1,000 basis points to revive the economy from a record high of 22 percent in June 2024. The SBP is scheduled to hold its MPC committee meeting on May 5, Topline Securities said. 'In a Poll conducted by Topline Securities, 69 percent of the market participants expect a rate cut of at least 50bps, while 31 percent believe that the central bank will observe the status quo,' Topline Securities said in a report. 'The ratio of participants observing status quo has come down from 38 percent in previous poll to current 31 percent.' The report said out of this 69 percent, 37 percent expect a rate cut of 50bps while 30 percent expect a rate cut of 100bps. Only 2 percent expect a rate cut of 150bps. Topline Securities said that the SBP has further room to cut around 200bps till December as the FY26 inflation can average between 6-7 percent, translating into a real rate of 500-600bps. 'Furthermore, falling oil prices, falling dollar index and higher remittances also make a strong case for a rate cut,' it added. 'However, the sustainability in prices/index of the former two (oil and dollar) is yet to be seen.' Topline Securities said that despite its view, it believes the central bank will observe the status quo in the upcoming MPC meeting due to various reasons. It said the expected foreign inflows for the second half of FY25 have not materialized yet and are expected to be received once the first review of the International Monetary Fund is approved by the Board. Furthermore, the IMF has also mentioned in its press release that Pakistan remains committed to maintaining a sufficiently tight monetary policy to keep inflation low. It said another reason why the central bank will maintain the same rate is because the US tariff risks still loom and 'we expect the central bank to maintain status quo till any clarity on this global development.' Inflation in Pakistan soared to around 40 percent in May 2023, driven by currency devaluation and subsidy removals for IMF approvals. But inflation dropped to a near-decade low of 1.5 percent in February, providing room for the central bank to boost growth. Economists also warn of the risk of the government taking advantage of lower interest rates to increase borrowing for an expansionary budget. That would potentially destabilize the progress made under the IMF program and crowd out the private sector. With additional input from Reuters
