Bank Negara likely to raise interest rate in 2022

PETALING JAYA: Bank Negara is likely to raise its interest rate this year following the footsteps of the United States (US) Federal Reserve which plans to raise interest rates three to four times this year to fight inflation.

HSBC Group Asian economics research co-head Frederic Neumann expected Bank Negara to raise its overnight policy rate (OPR) by 50 basis points this year, on the back of stronger domestic demand and strong exports numbers as the world economy recovers from the impact of Covid-19 pandemic.