Inflation downtrend likely to continue

KUALA LUMPUR: While there are expectations that Bank Negara will further hike the overnight policy rate (OPR) by 25 basis points (bps) to 3% this week, economists have mixed views on the need for such a move and its effectiveness in combating inflation.

Malaysia University of Science and Technology economics professor Geoffrey Williams said there was no necessity for the central bank to raise rates, as “inflation is slowing and will be lower this year, anyway.”