Economics

Malaysia Raises Key Rate as Analysts Bet No More This Year

Most of the 20 economists in survey predicted decision
Economic growth is strong, while inflation is picking up

The Petronas Twin Towers stand illuminated at night in Kuala Lumpur, Malaysia, on Monday, July 21, 2014. Malaysian Airline System Bhd. (MAS), reeling from its second disaster in four months, plans to present a revival plan to its state-run parent Khazanah Nasional Bhd. this week, people familiar with the matter said yesterday, amid reports the national carrier is likely near the end of its days as a publicly traded company.Photographer: Brent Lewin/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Pooi Koon Chong and Y-Sing Liau

January 25, 2018 at 7:00 AM UTC

Updated on

January 25, 2018 at 9:25 AM UTC

This article is for subscribers only.

Malaysia’s central bank raised its benchmark interest rate for the first time since 2014, with economists guessing that it won’t need to tighten again this year.

Bank Negara Malaysia increased the overnight policy rate to 3.25 percent from 3 percent, it said in a statement in Kuala Lumpur on Thursday, as predicted by 16 of the 20 economists in a Bloomberg survey.