Thailand
Malaysia’s economy returned to growth in Q4, Moody’s says
Malaysia’s economy bounced back from a 4.5 percent third quarter contraction to rise 3 percent, year on year, in the last three months of 2021, according to Moody’s Analytics. Coronavirus restrictions hit household spending in the previous quarter as cases spiked.
“The weakness in domestic demand more than offset the gains from a relatively strong trade position over this period. But domestic conditions improved in the final quarter,” said Moody’s Analytics Economist Shahana Mukherjee. “Higher vaccination rates and the easing of restrictions paved the way for a visible turnaround in retail spending since October. We expect continued strength in exports and a revival in private consumption supported Malaysia’s fourth-quarter growth.”
Fourth quarter figures are released on Friday.
The Reserve Bank of India holds its monthly policy meeting on Wednesday. It is likely to leave the benchmark repo rate at 4 percent.
“The Omicron threat to India’s recovery is starting to wane, but supply-side stress and volatile energy prices are stoking inflation concerns,” Mukherjee said. “India’s consumer price inflation rate rose considerably in the closing months of 2021 and is forecast to rise more than 6 percent this quarter as core prices pick up. This will test the RBI’s commitment to continue with an accommodative monetary stance, particularly as many other leading central banks consider bringing forward the timing of interest rate tightening.”
The bank suspended bond buying under the Government Securities Acquisition Programme in October but Moody’s said a rate rise is unlikely until June at the earliest.
The Bank of Thailand’s board also meets on Wednesday with the benchmark rate forecast to remain unchanged at 0.5 percent.
Bank Indonesia holds its February meeting on Thursday. It is also likely to leave rates on hold at 3.5 percent.
Source: https://www.khmertimeskh.com/501020092/malaysias-economy-returned-to-growth-in-q4-moodys-says/