'Unpredictable' Bank Negara

KUALA LUMPUR: Bank Negara Malaysia again emerged as among the top central banks in Asia in terms of being the least predictable in its monetary policy, says Credit Suisse.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/rup2800/Article/index_html
Published: Jun 30, 2013



Bank of Korea and the Reserve Bank of India topped the research house's non-Japan Asia list and Bank Negara came in second.

The research house, which undertook the study, compared the results of all the scheduled policy meetings held over the past seven years based on the Bloomberg consensus expectation.

The three central banks clocked more than 20 percentage points in terms of scheduled rate decisions where the Bloomberg consensus got wrong, surprising the market instead.

Economist Robert Prior-Wandesforde described the central bank of the Philippines as the most predictable, particularly its reverse repo rate.

Bank Indonesia is comfortably still the most dovish over the period, although it remains to be seen whether this continues under the new governor, he added.

Two years ago, Credit Suisse conducted a similar study in which Bank Negara Malaysia was categorised as the least predictable with the consensus wrong more than 25 per cent.