Moody’s: US interest rate hike impact on Malaysia minimal

KUALA LUMPUR: Malaysia’s exposure to the global economic vulnerability following the steep rise in US interest rates will be mitigated as the majority of the Government and economy’s debt is financed domestically through stable sources.

The panellists during Moody’s: Asia Pacific sovereign outlook for 2018 teleconference earlier yesterday said the impact of an interest rate shock would be most acutely felt by countries that had high gross borrowing needs, especially if they relied significantly on market borrowing and foreign-currency funding.