Malaysia Set to Resist Early Rate Cut as It Weighs Tariff Impact

Malaysia’s central bank is expected to keep interest rates unchanged on Thursday and will likely maintain a wait-and-see approach until at least the second half of the year as the government seeks to avoid higher US tariffs.

Bank Negara Malaysia will keep the overnight policy rate at 3% in its first meeting since the global trade war erupted, according to 20 of 25 analysts in a Bloomberg survey. The rest expect a 25-basis point cut — the first time easing bets have come into play since the key rate was adjusted to its current level in May 2023.