Malaysian central bank makes surprise rate rise
Pre-emptive decision designed to stave off inflation
On May 11, Bank Negara Malaysia raised its overnight policy rate (OPR) by 25 basis points to 2%, in a pre-emptive move to fight inflation that surprised markets.
The ceiling and floor rates of the OPR corridor increased to 2.25% and 1.75%, respectively.
Headline inflation is projected to average 2.2–3.2% in 2022, the central bank said. In March, inflation rose to 2.2% year-on-year, driven by higher food and non-alcoholic drinks prices, which increased by 4%.
Over the course of the Covid-19
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