Bank Negara Malaysia Implements First Interest Rate Hike Since May 2011
January 25, 2018
Since Malaysia’s last interest rate increase in 2011, there had been a pair of 25-basis point cuts in July 2014 and July 2016. But growth has been picking up and is expected to exhibit continuing upward momentum in 2018, with better support from exports and continuing strong domestic demand. Although inflation averaging 3.7% in 2017 will likely be lower this year, monetary officials felt it is now appropriate to start rate normalization “to prevent the build-up of risks that could arise from interest rates being too low for a prolonged period of time,” according to a released statement.
Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank Negara Malaysia
ShareThis
