Malaysia: Central bank unexpectedly hikes interest rate to tame inflation

Source: South China Morning Post [Hong Kong]

“Malaysia unexpectedly raised its benchmark interest rate on Wednesday, as it moved preemptively to head off price pressures that risk hurting demand in the economy only just recovering from the pandemic. Bank Negara Malaysia (BNM) increased the overnight policy rate by 25 basis points to 2 per cent, a move seen by only five of the 19 economists surveyed by Bloomberg. The rest had predicted no change. … Malaysia’s ringgit climbed as much as 0.2 per cent to 4.3760 versus the US dollar after the decision, which most economists were expecting only by the second half of the year.” (05/11/22)