Bank Negara is expected to increase interest rates by 25 basis points by the end of 2022.
The Bank Negara is expected to continue raising interest rates by at least 25 basis points before the year is over, according to several local investment institutions!
The Star reports that Kenanga expects the Bank Negara MPCs in September and November to see an increase in the overnight policy rate (OPR) of at least 25 basis points. Kenanga thinks that Bank Negara is being compelled to raise rates because of the Fed’s aggressive actions.
Kenanga emphasised that Malaysia’s inflation rate increased to 3.4% in June from just 2.8 percent in May.
Malaysia is experiencing a rise in inflationary pressures. Bank Negara will maintain its hawkish stance and raise interest rates by at least another 25 basis points, driven by the robust recovery in domestic demand.
HLIB Research has maintained its earlier prediction that the Bank Negara will continue to hike interest rates by 25 basis points in September and that the OPR will increase from the current 2.25 percent to 2.50 percent by the end of the year.
The July inflation rate will be released by the Department of Statistics Malaysia in the middle of August. The Bank Negara will almost certainly raise rates in September if domestic inflation rates continue to increase.
