Nomura Singapore's Paracuelles said strong economic growth would also support the case for a rate hike.
KUALA LUMPUR: Inflation may accelerate in the second-half of this year to around 4% from 2% on a combination of strong economic growth as well as the rationalisation of the RON95 petrol subsidy, according to an economist.
This may in turn convince Bank Negara to raise the benchmark overnight policy rate (OPR) by 25 basis points to 3.25%.The central bank has maintained a “neutral” stance on the OPR since May 2023 when the benchmark rate was last raised by 25 basis points to 3%.
