Economics

Malaysia’s Central Bank May Be Ready to Raise Rates

16 of 20 economists predict key rate to rise to 3.25% from 3%
A hike would make Malaysia the first in Southeast Asia to move

HSBC co-Head of Asian Economics Research Frederic Neumann discusses Malaysia’s monetary policy and the dollar.(Source: Bloomberg)

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By Pooi Koon Chong

January 24, 2018 at 9:00 PM UTC

This article is for subscribers only.

Not since 2010 has Malaysia’s central bank faced as many calls from economists to raise interest rates as it does now.

After years of low rates, Bank Negara Malaysia is set to become the first central bank in Southeast Asia to tighten policy on Thursday, with 16 of the 20 economists surveyed by Bloomberg predicting a 25 basis-point increase in the benchmark rate to 3.25 percent. That’s the highest number calling for a rate hike since May 2010, when all but one of 22 analysts correctly predicted an increase.