Liquidity in Malaysia May Tighten Further as Rate-Hike Bets Grow

Analysts expect Malaysia’s money-market funding conditions to tighten further later this year, driven by expectations that stronger economic growth could lead Bank Negara Malaysia to raise interest rates. The outlook implies higher borrowing costs and potential pressure on local credit/bond conditions as policy shifts toward a more hawkish stance.

Analysis

Analysts expect Malaysia’s money-market funding conditions to tighten further later this year, driven by expectations that stronger economic growth could lead Bank Negara Malaysia to raise interest rates. The outlook implies higher borrowing costs and potential pressure on local credit/bond conditions as policy shifts toward a more hawkish stance.