RHB Research Institute expects Malaysia's money supply (M3) to grow at 5.5 per cent this year, as compared to eight per cent in 2018.

In a research note today, it said the growth should keep demand-pull price pressure contained.

"We expect headline inflation to be within the range of 1.5 to 2.5 per cent in 2019, from one per cent in 2018, due to the increased volatility of oil prices in recent months," it said.

Malaysia's M3 growth moderated to a commendable 7.5 per cent as at end-Jan 2019, after rising to eight per cent in December 2018 — its fastest pace in five years, dragged by lower demand for funds from foreign operations and the private sector.

"Still, demand for funds from the public sector increased during the month," RHB Research said.

The research firm said it expects Bank Negara Malaysia to maintain the overnight policy rate (OPR) stable at 3.25 per cent for 2019.

"We think interest rates at current levels remain accommodative and refraining from a rate cut would help stem capital outflows and the ringgit stable," it added.