Malaysia c.bank raises interest rate in surprise moveTourists choose what to buy during a shopping spree along Khao San Road, a popular spot for foreign visitors in Bangkok, on May 5, 2022. (Photo: Nutthawat Wicheanbut)KUALA LUMPUR: Malaysia's central bank unexpectedly raised its benchmark interest rate from a historical low on Wednesday, as rising commodity prices, strained supply chains and strong demand conditions fanned inflationary pressures. Bank Negara Malaysia (BNM) raised its overnight policy rate to 2% from the record low of 1.75%. It was the first hike since July 2020, when rates were slashed to a historic low to combat the impact of the Covid-19 pandemic. A Reuters poll of 18 economists had expected rates to remain unchanged this week, with the central bank likely to start tightening next quarter to avert rising inflationary pressures.

Source: Bangkok Post May 11, 2022 20:21 UTC