Malaysia: BNM expected to hike rates later this week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank Negara Malaysia would hike the policy rate by 25 bps at its event later this week.

Key Quotes

“BNM has signalled a more positive view on Malaysia’s economy amid signs of firmer economic growth which is supported by the easing of restrictions and reopening of international borders. This is why we think there is room for BNM to follow-through with another 25bps rate hike at both the Jul and Sep meetings.”

“Thus our updated OPR forecasts are 2.50% by end-2022 and 3.00% by mid-2023 (vs. 2.25% and 2.50% previously).”