Malaysia: BNM could hike rates in H2 2022 – UOB
|Bank Negara Malaysia (BNM) could start its tightening cycle in the second half of the current year, suggested Economist at UOB Group Lee Sue Ann.
Key Quotes
“Given further fiscal policy support from Budget 2022 and a nascent recovery, we continue to expect BNM to stand pat on OPR until mid-2022 and thereafter, we expect a 25 bps rate hike to 2.00% in 3Q22.”
“We think potential triggers for earlier rate hikes would be a more robust and stable domestic growth in coming months and signs of wider pass-through of higher costs to consumers as the economy recovers.”
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