Malaysia surprises by lifting key interest rate from all-time low on inflation risk

Bank Negara Malaysia raised its overnight policy rate to 2 per cent from a record low of 1.75 per cent. - Reuters

KUALA LUMPUR (Reuters): Malaysia's central bank unexpectedly raised its benchmark interest rate from an historic low on Wednesday (May 11), to cool inflationary pressures as the South-East Asian country continues to recover from the Coivid-19 pandemic.

Bank Negara Malaysia (BNM) raised its overnight policy rate to 2% from a record low of 1.75% where it has been since July 2020.