Interest rate hike likely for second half of next year

CGS-CIMB Research said it expected monetary policy normalisation to begin only in the second half of 2022 (H2’22). It had earlier projected the policy change to start in the second quarter of next year (Q2’22).

PETALING JAYA: Bank Negara will likely start raising interest rates in the second half of next year as the country’s economy strengthens, according to several brokerages.

In its recent note, CGS-CIMB Research said it expected monetary policy normalisation to begin only in the second half of 2022 (H2’22). It had earlier projected the policy change to start in the second quarter of next year (Q2’22).