Growing pressure on Bank Negara to hike rates faster - News Summed Up

Growing pressure on Bank Negara to hike rates faster


KUALA LUMPUR (June 22): There is growing pressure on Bank Negara Malaysia to hike rates faster in the face of an aggressive US Federal Reserve, and widening consensus that global food and energy prices will continue to stay elevated for longer, with any potential supply shocks seen capable of driving prices and inflation even higher. "Rate hikes would then also need to be sharper and more abrupt in that scenario. There may also be a need to act faster now in order to have sufficient policy buffers in preparation for the next recession (when it happens). But it has also acknowledged that the negative output gap, a potential indicator of rate adjustments, was closing faster than projected, the economists said. “Should these price revisions materialise, it will further intensify the second-round effects of inflation,” the economists said.


Source: The Edge Markets June 22, 2022 22:45 UTC



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