Analysis by Region - Emerging Markets - Malaysia

Analysis by Region - Emerging Markets - Malaysia

Malaysia's economy has grown strongly so far this year, but we think it will soon begin to lose momentum. As external headwinds mount, we see GDP growth slowing to a below-trend pace of 3.6% in 2023, from 8.8% this year. Slower growth, alongside easing inflationary pressures, should prompt Bank Negara Malaysia (BNM) to maintain its policy rate at 2.75% throughout 2023, following one more rate hike late this year.