Malaysia increases interest rates after 4 years

Bank raises policy rate by 25 basis points to 2%

By Gokhan Ergocun

ISTANBUL (AA) - The Malaysian central bank on Wednesday decided to increase the overnight policy rate (OPR) by 25 basis points to 2%, unexpectedly after four years.

"The ceiling and floor rates of the corridor of the OPR are correspondingly increased to 2.25 percent and 1.75 percent, respectively," it added.

The bank said inflationary pressures have increased rapidly due to a rise in commodity prices.

It also said the country's inflation is projected to average between 2.2% and 3.2% this year.

"For the Malaysian economy, latest indicators show that growth is on a firmer footing, driven by strengthening domestic demand amid sustained export growth," it added.

The bank raised the interest rate by 25 basis points to 3.25% in January 2018 the last time.

Kaynak:

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