KUALA LUMPUR:'' Malaysian Institute of Economic Research (MIER) is maintaining its economic growth forecast for 2010 and 2011 at 6.5% and 5.2%.
The private sector think-tank said on Tuesday, Oct 19 he Business Conditions Index (BCI) fell sharply to 104.9 points in 3Q10, which more than offsets the surge in the Consumer Sentiment Index (CSI) to 115.8 points. Other indices also painted a similar gloomy environment ahead.
'In terms of interest rates, MIER anticipates the overnight policy rate (OPR) to be kept at 2.75% until end-2010. This is useful in order to assess the effects of previous rate hikes and the possible impact from economic fallout in the Eurozone.
'The OPR will trend higher to 3.25% in 2011, in tandem with a higher overall CPI forecast of 2.5% yoy (2.2% in 2010),' it said.
The private sector think-tank said on Tuesday, Oct 19 he Business Conditions Index (BCI) fell sharply to 104.9 points in 3Q10, which more than offsets the surge in the Consumer Sentiment Index (CSI) to 115.8 points. Other indices also painted a similar gloomy environment ahead.
'In terms of interest rates, MIER anticipates the overnight policy rate (OPR) to be kept at 2.75% until end-2010. This is useful in order to assess the effects of previous rate hikes and the possible impact from economic fallout in the Eurozone.
'The OPR will trend higher to 3.25% in 2011, in tandem with a higher overall CPI forecast of 2.5% yoy (2.2% in 2010),' it said.
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