RHB Research expects M3 money, loan to grow at 5.5 pct, 5.2 pct in 2019

KUALA LUMPUR: RHB Research Institute Sdn Bhd expects Malaysia’s money supply ( M3) and loan to grow at a healthy pace of 5.5 per cent and 5.2 per cent respectively in 2019, from estimates of 5.2 per cent and five per cent, in 2018.

In a note yesterday, the research house said the higher projections was based on the eight per cent year- on-year (y- oy) M3 growth in October, which accelerated at the quickest pace in five years time from a revised 7.2 per cent in September, supported by higher demand for funds from the public sector.

“Separately, October loan growth trended higher for the third straight month to six per cent y- o-y from 5.7 per cent in the previous month, driven by higher loans extended to the corporate sector, which surged to 6.1 per cent y- o-y during the month fom 5.4 per cent in September,” it said.

Despite the higher M3 and loan growth projections for 2019, RHB Research, however said, the marginally higher growth in money supply was unlikely to result in any demand- pull price pressure, as core inf lation remained subdued. — Bernama