Asia: Critical central banks meet eyed: BoK and BNM – BAML

By FXStreet FXStreet (Delhi) – Research Team at BAML, notes that tomorrow two important Asian banks will hold meetings including that of Korea and Malaysia and at the time of diverging monetary policies, investor will be closely eyeing them.

Key Quotes

“The Bank of Korea (BoK) and Bank Negara Malaysia (BNM) will hold Monetary Policy Committee (MPC) meetings on Friday (11th Sept).”

“The market is closely watching these meetings given that it is expecting BoK to cut rates, but BNM to hike rates. 3×6 FRA in Korea is pricing an 18bp cut, while in Malaysia, it is pricing in a 42bp hike.”

“Contrary to market expectations, we believe both central banks will stay put this time. However, if conditions deteriorate in the near term i.e., exports and domestic economy weaken even more in Korea and Ringgit continues to sell-off in Malaysia, both BoK and BNM might be forced to move, in our view.”
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Source:: FX Street