(Reuters) – Bank Negara Malaysia will raise interest rates for the third time in a row 25 on Thursday, reports Reuters A fourth rise in November to quell growing inflationary pressures, but the Fed will choose to move slowly despite its hawkish stance, the Reuters poll found.
Although Malaysia’s inflation rate rose to 4.4% in July, well above the target of 2-3%, relatively benign compared to other Southeast Asian countries, allowing the central bank to move at a slower pace.
Bank Negara Malaysia (BNM) has moderately raised interest rates by 25 basis points from May to 2.25%.
Divide by one Economists in August 22 to Sept 5 A Reuters poll predicts that Bank Negara will raise interest rates by 25 basis points to 2.
at its Sept 8 meeting %. If realized, it would be the first time since the 2010 central bank raised interest rates three times in a row.
An economist expects a basis point upward revision.
“Given the strong GDP growth in the second quarter 25, there are signs of further economic expansion in the second quarter 22 Bank Negara Malaysia may follow up with a third 75 bps rate hike despite moderate pace and wider inflation impact from the second round,” UOB Senior Economist J. Julia Goh pointed out.
“In addition to internal factors, we believe that expectations of Fed rate hikes in the coming months and global monetary conditions will also be considered by BNM at the September meeting.”
80% of respondents, 00 of 20, forecast for November The meeting will raise interest rates again by 25 basis points, the median value is shown as 2.75%.
Near 25% of Economists, 16 19, whose long-term view on interest rates expects the overnight rate to reach 3.00% by the end of March. The remaining eight said 2.75%.
If the majority view prevails, rates will remain at pre-pandemic levels. They are then expected to remain the same until at least the end of next year.
Malaysia’s economy, a net exporter of oil, expanded 8.9% in the April-June quarter, the fastest pace in a year. Strong growth and a signal of further rate hikes by the Fed will push policymakers to continue tightening policy.
Still, China, Malaysia’s largest economy, faces the risk of a sharp slowdown in its trading partners, with economists only expecting a moderate pace.
“Bank Negara Malaysia prefers to gradually adjust policy rates to balance the domestic economic recovery facing downside risks to global growth and rising inflationary pressures,” noted DBS economist Chua Han Teng.