Central Banks
Malaysia Surprises With Rate Hike as Financial Risks Flagged
- Quarter-point hike reverses BNM’s pandemic-era stimulus
- Policy apt to counter risk of future financial imbalances
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Malaysia unexpectedly raised its benchmark interest rate by a quarter point on Wednesday, as it sought to ward off any risk of future financial imbalances amid lingering price pressures.
Bank Negara Malaysia hiked the overnight policy rate to 3%, a move predicted by just three out of 19 economists in a Bloomberg survey. The rest had expected the central bank to stay pat for a third straight meeting.