Malaysia's larger-than-expected stimulus package

Malaysia's larger-than-expected stimulus package suggests government might move less on monetary policy going forward, says UOB; notes BNM's cut policy rate 150 bps since November, UOB expects another 25 bp cut to 1.75% by end 2Q09, keeping in mind BNM governor Zeti's comment that central bank has front-loaded its interest rate cuts and that it's not constructive to keep interest rates low, which appear to be targeted at dampening rate cut expectation. Says pressure for MYR to fall remain, giving weak growth prospects, likely pushing USD/MYR to 3.75 over next few weeks. But "we see a rebound in ringgit towards 3.55 per dollar by the year-end on the assumption of the bottoming-out of the economy."  USD/MYR last at 3.6875.