Central Banks

Malaysia Hikes Key Rate, Says Not on Pre-Set Tightening Path

  • Key overnight policy rate raised by quarter-point to 2.5%
  • Inflation seen peaking in 3Q and moderating thereafter

Bank Negara Malaysia hiked the overnight policy rate by 25 basis points to 2.50%

Photographer: Ian Teh/Bloomberg
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Malaysia’s central bank raised borrowing costs for the third time this year to fight price pressures, while signaling future tightening is not a given as it seeks to support growth and tame inflation.

Bank Negara Malaysia hiked the overnight policy rate by 25 basis points to 2.50% on Thursday, a move seen by all but one of the 19 economists in a Bloomberg survey.