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Bank Negara Malaysia Unexpectedly Hikes Rates by 25bps

BNM

Bank Negara Malaysia unexpectedly hikes rates by 25bps to 3.00%, with only a minority of analysts looking for such a change.

Bank statement highlights:
  • No signs of excessive tightening affecting consumption
  • Core inflation to stay elevated on firm demand conditions
  • Balance of risks to the inflation outlook are tilted to the upside
USD/MYR slips on the back of the rate decision - only a small minority of analysts were looking for a hike today - rate slips to trade 4.4525 and falling further at typing: down 0.25% on the day.

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