GBP/MYR Outlook: Slightly weaker, but likely to move sideways, as the rate is below its recent average and lacks a clear driver for movement.
Key drivers:
• Rate gap: The Bank of England's potential for interest rate cuts contrasts with Bank Negara Malaysia's stable policy, which is supporting the ringgit.
• Risk/commodities: The recent increase in oil prices may bolster the Malaysian economy, potentially leading to further support for the MYR.
• One macro factor: Strong growth in Malaysia's economy, which expanded by over 5% in the last quarter of 2025, continues to enhance investor confidence in the ringgit.
Range: GBP/MYR is likely to hold within its recent stable range, experiencing limited fluctuations.
What could change it:
• Upside risk: A surprising indication from the Bank of England regarding future rate decisions could strengthen the GBP.
• Downside risk: Continued economic strengthening in Malaysia, paired with a sustained oil price increase, could further pressure the GBP against the MYR.