Central Banks

Malaysia Set to Hike Key Interest Rate as Price Pressures Persist

  • All but two economists in survey predict a quarter-point hike
  • Living costs a key issue among voters ahead of Nov. 19 polls

Soaring living costs will be among the biggest concerns for Malaysians as they head to the polls on Nov. 19.

Photographer: Ian Teh/Bloomberg
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Malaysia is expected to raise its benchmark interest rate again Thursday, as the Southeast Asian nation seeks to cool persistently high inflation ahead of a general election due in weeks.

Bank Negara Malaysia will hike the overnight policy rate by 25 basis points to 2.75% at its last policy meeting of the year, according to 22 of 24 economists in a Bloomberg survey. The rest predict no change.