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BNM likely to follow through with third 25 bps rate hike in September, says UOB

KUALA LUMPUR (Aug 31): UOB Global Economics & Markets Research said that given the robust gross domestic product growth print in the second quarter of 2022, signs of further economic expansion in the second half of the year, albeit at a moderate pace, and broadening second-round effects on inflation, Bank Negara Malaysia (BNM) will likely follow through with a third 25-basis-point (bps) rate hike in the coming Monetary Policy Committee meeting.

In its September Central Bank Watch note released on Wednesday (Aug 31), UOB said that besides internal factors, expected outsized US Federal Reserve rate hikes in the coming months and global monetary conditions would also be taken into consideration by Malaysia’s central bank in its September meeting.

BNM is scheduled to release its monetary policy statement on Sept 8.

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