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Bank Negara Malaysia set to raise policy rate again – Moody’s Bernama

Bank Negara Malaysia set to raise policy rate again – Moody’s Bernama

KUALA LUMPUR: Bank Negara Malaysia (BNM) is expected to lift its Overnight Policy Rate (OPR) by 25 basis points (bps) to 2.25 per cent at its fourth Monetary Policy Meeting (MPC) of the year scheduled for this week, according to Moody’s Analytics.

In its report today, the research firm also noted that the country’s central bank hiked the rate in May, lifting it from the record low where it had languished for nearly two years.BNM’s two-day MPC meeting is scheduled to start tomorrow.

Meanwhile, MIDF Research said BNM will “consider for another rate hike of 25bps” following the continuous rise in core inflation, reflecting solid underlying domestic demand.

“In addition, upbeat momentum in distributive trade sales, dip in unemployment rate to new pandemic low at 3.9 per cent in April 2022 and double-digit expansion rate of external trade provide positive signals of strong recovery in the economy,” it added in a note today.

At its third MPC meeting in May, the central bank increased the OPR by 25 basis points to 2.00 per cent. The ceiling and floor rates of the corridor of the OPR are correspondingly increased to 2.25 per cent and 1.75 per cent, respectively.

It said the sustained reopening of the global economy and the improvement in labour market conditions has continued to support the recovery of economic activity.– BERNAMA