Standard Chartered Shifts Rates Outlook To 'Positive'

KUALA LUMPUR, Aug 15 (Bernama) -- Standard Chartered Global Research has shifted its interest rates outlook to 'positive' from 'neutral' on possible further cut in policy rate in the future. In a research note Monday, Standard Chartered said, it expected Malaysia's Central Bank (BNM) to cut the policy rate in November. The research firm said it has lowered its full-year growth forecast to 3.8 per cent from four per cent, given the slowdown for a third consecutive quarter. "BNM Governor, Muhammad Ibrahim, in an interview with state-owned news agency, Bernama, on July 15, 2016, noted that the rate cut in July was pre-emptive and that he expected stronger growth in the second half. "Therefore, although we still see impetus for more monetary easing, we believe the central bank will wait for more data before it sanctions another cut in November," it said. The company said although its base scenario was that BNM would not ease before November it expected the market to price in a more dovish BNM policy stance and demand for Malaysian Government Securities to increase. -- BERNAMA