First rate hike in 3 years seen as consumer debt risk grows

Veteran bank governor Tan Sri Dr Zeti Akhtar Aziz has her eye on rising inflation, which has turned real interest rates negative. At its last meeting in May, it said it might need to act to counter a

KUALA LUMPUR: Malaysian car mechanic Cheong Tim Soong spent years trying to curb his dependence on expensive credit card debt until a friend took decisive action – cutting up the card in front of him.

Bank Negara is likely to take similar, though less drastic, action by raising interest rates on Thursday for the first time in more than three years, to curb strong domestic demand that has ratcheted up debt levels and inflation.