Economist at UOB Group Lee Sue Ann expects the Bank Negara Malaysia to keep its policy rate unchanged at this week’s event.

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Although the May monetary policy statement indicated that BNM continues to leave the door open for further rate hikes, we think the odds for another hike is diminishing as external downside risks linger or escalate, growth momentum moderates, and consumption drivers slow weighed by prospects of higher costs amid adjustments in domestic subsidy policies.