This compares to the Ministry of Finance's forecast in October of 2.8%-3.3% inflation for 2023. "As core inflation remains elevated, this signals the persistence of demand-pull price pressures along with higher wages. Hence, we reiterate our view for another two 25 bps hikes in OPR to 3.25% in the first quarter of 2023 (1Q2023). BNM may raise the OPR by another 25 bps in January 2023, to further realign with global monetary tightening trends and to curb persistently elevated core inflation, the research house said. Malaysia's core inflation rose to a new high of 4.2% in November, driven by robust consumer demand and an improving job market.

Source: The Edge Markets December 29, 2022 16:13 UTC