Central Banks
Malaysia Likely to Stand Pat on Key Rate as Inflation Cools
- Some economists say one more hike this year still on cards
- Easing price pressures, exports drop support pause this week
The Bank Negara Malaysia headquarters in Kuala Lumpur.
Photographer: Nadirah Zakariya/BloombergThis article is for subscribers only.
Malaysia will likely extend a pause in rate increases on Wednesday, as slowing inflation gives it space to continue assessing the impact of last year’s monetary tightening amid weakening global demand.
Bank Negara Malaysia will keep the overnight policy rate at 2.75% for a third straight meeting, according to 16 of 19 analysts in a Bloomberg survey. Economists from Bank of America, Standard Chartered Plc and United Overseas Bank expect BNM to increase by a quarter point to bring the key rate back to pre-pandemic level of 3%.