Potential rate hike next year

Rate stays: Bank Negara is widely expected to keep the OPR unchanged when its monetary policy committee meets in the week ahead to support the country’s still-languishing economy.

MALAYSIA could see a modest increase in its benchmark interest rate next year as the country’s economic outlook improves.

The likelihood of the US Federal Reserve (Fed) to begin unwinding its “easy money” policy by the end of this year is also a factor that could drive Malaysia’s key rate higher in 2022.