Renewed market volatility as central banks raise rates

KUALA LUMPUR: Volatility has returned to the domestic market following the recent interest rate hike by Bank Negara and key global central banks.

"The week just ended saw monetary policymakers – led by the US Federal Reserve, European Central Bank and Bank Negara Malaysia – raising key interest rates (by 0.25% each) while the US banking sector was hit by a confidence crisis triggered by bank failures (the latest being First Republic Bank)," said Kenanga Research in its weekly review.