Maybank pegs Q3 start for rate cuts

MONETARY policy settings will remain tight in the first half of the year due to continued inflation risks, the Maybank Investment Banking Group said, with rate cuts only likely to start in the third quarter.

“While our baseline forecast is for the monthly headline inflation to be stable in coming months, the low rice inventory and continued surge in rice inflation could push FNAB (food and non-alcoholic beverages) inflation upward,” it said in a report.