Malaysia PM Dismisses Calls to Boost Ringgit Via Key Rate Hike
- Anwar says economic indicators show no need to raise rates
- The PM sees de-dollarization as solution to defend ringgit
Malaysia’s central bank is set to decide on Thursday whether to adjust the overnight policy rate.
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Malaysian Prime Minister Anwar Ibrahim said he sees no need to boost borrowing costs to support the local currency, and that the solution to the weaker ringgit was to decouple from the US dollar.
Economic indicators such as inflation and unemployment are down while investment is up, making it hard to justify a rate hike that could hurt small businesses, Anwar told parliament on Tuesday. Malaysia’s central bank is set to decide on Thursday whether to adjust the overnight policy rate.