Malaysia Trade Data Suggest July Rate Increase - ANZ

        0754 GMT [Dow Jones] Malaysia's April exports rise +18.9% on-year -- their fastest pace since May 2010 -- on strong electronics shipments; gains were far beyond the 9.6% expected and March's 8.4% rise. That suggests a steady uptick in external demand, likely driven by capex needs, ANZ Bank says in a research note. Imports grew 5.0% on-year and capital imports were especially strong, suggesting a rotation toward investment-driven growth that might constrain Malaysia's current-account surplus this year. In all, the trade data make a rate increase more likely at the central bank's July 10 meeting: "Current domestic demand momentum provides ample space for Bank Negara Malaysia to act pre-emptively and commence rate hikes with a 25 bps rise," ANZ economists Weiwen Ng and Glenn Maguire write. (Michael.arnold@wsj.com)
        (END) Dow Jones Newswires

        June 06, 2014 03:54 ET (07:54 GMT)