Malaysia's February inflation almost flat

Kuala Lumpur

MALAYSIA's inflation for the month of February was virtually unchanged from a year ago, largely on lower fuel costs. The sharp easing in consumer prices from January's one per cent rise was the third straight month-on-month dip and the lowest in five years.

With headline inflation at a mere 0.1 per cent or near zero, Bank of America Merrill Lynch (BoAML) believes the central bank will ease interest rates. It has projected a 25 basis points cut to the benchmark overnight policy rate to 3 per cent at the next central bank monetary policy committee meeting in May.