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Bank Negara Malaysia Rises Policy Rate To 2%

ASIA
  • *MALAYSIA RISE OVERNIGHT POLICY RATE BY 25BPS TO 2%; EST. 1.75% - bbg
  • Analysts were expecting the policy rate to remain unchanged at 1.75%; however, we have seen lately that inflationary pressures have started to rise in Asia / SE Asia in recent months after remaining 'steady' in 2021.
  • Last week, it was India who surprised the market by unexpectedly increasing the repo rate by 40bps to 4.4%.
  • The recent spike in inflation in Asia/ SE Asia has been mainly driven by the global supply chain disruption (caused by the severe lockdown policies imposed by the Chinese government) and the Ukraine war shock.

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