KUALA LUMPUR: A rate hike by Bank Negara Malaysia appears to be in the pipeline. Inflation is moderately high and rising, and BNM sounds bullish on the outlook for 2018.
The central bank also signaled a hike may be imminent, saying earlier this month that it will review the appropriateness of current policy settings. Even so, there are reasons for it to move conservatively: investment remains vulnerable and exports may face stronger headwinds. Bloomberg Economics expects a single rate hike from BNM next year, lifting the overnight policy rate by 25 bps to 3.25% in 1Q.
