BI expected to reduce rates early in 2020 – UOB

Economist Lee Sue Ann at UOB Group sees the BI cutting rates early next year following a potential rate cut by the Fed.

Key Quotes

“BI’s 7-day Reverse Repo Rate was unchanged at 5.00% in November and consequently the Deposit Facility and the Lending Facility were unchanged at 4.25% and 5.75%, respectively. While we expect rate hold in December, we look for BI to cut one more time in 1Q20 to 4.75%, given our expectations for the US Fed to possibly reduce its Fed Fund Rate in 1Q20.”