MARC Ratings Bhd chief economist Firdaos Rosli told StarBiz he expects another 25 bps hike in the coming MPC meeting.皇冠正网app（www.hg108.vip）是一个开放皇冠正网代理APP下载、皇冠正网会员APP下载、皇冠正网线路APP下载、皇冠正网登录APP下载的皇冠正网平台。皇冠正网APP上最新登录线路、新2皇冠官方正网更新最快。皇冠正网APP开放皇冠官方会员注册、皇冠官方代理开户等业务。
PETALING JAYA: Another round of spike in borrowing cost is anticipated when Bank Negara convenes its Monetary Policy Committee (MPC) meeting tomorrow.
Economists are expecting a 25-basis-point (bps) hike in the overnight policy rate (OPR) to 2.25% at the July 6 meeting.
This would be the first consecutive rise in the OPR in more than a decade to stem rising inflationary pressures from the weaker ringgit as the US Federal Reserve goes on an aggressive interest rate hike.
On May 11, the central bank raised the OPR to 2% from 1.75%.
As the OPR determines the rate of interest that financial institutions charge each other for overnight funds, the hike means higher borrowing costs.
All 22 economists in the June 27-July 1 Reuters poll forecast rates to rise by another 25bps to 2.25% at the July 6 meeting. The central bank last raised rates twice in a row in mid-2010.
Economists see 25 bps rise at next MPC meeting
A slight majority of survey respondents, 12 of 22, predicted another 25 bps rise in September to 2.50%, while the remaining 10 expected no change after a July hike.
MARC Ratings Bhd chief economist Firdaos Rosli told StarBiz he expects another 25 bps hike in the coming MPC meeting.,
,电报群搜索机器人（www.tel8.vip）是一个Telegram群组分享平台。电报群搜索机器人包括电报群搜索机器人、Telegram群组索引、Telegram群组导航、新加坡Telegram群组、Telegram中文群组、Telegram群组（其他）、Telegram 美国 群组、Telegram群组爬虫、电报群 科学上网、小飞机 怎么 加 群、tg群等内容。电报群搜索机器人为广大电报用户提供各种电报群组/电报频道/电报机器人导航服务。
He said this would come in amid higher private consumption growth in the second quarter (2Q) and gross domestic product (GDP) growth in the same period.
The government is maintaining its economic growth projection of between 5.3% and 6.3% for 2022.
The nation’s economy expanded by 5% year-on-year in 1Q.
The central bank will likely consider, among others, the steady decline in the unemployment rate over the recent months (January 2022: 4.2% versus April 2022: 3.9%) and financial market stability amid foreign capital flows while keeping the ringgit fairly stable against the ongoing external pressures.
He said the bank would also consider policy normalisation exercise, where an excessive accommodative stance to cushion the impact of Covid-19 pandemic on the domestic economy would have to eventually be tightened.
However, Firdaos does not foresee the central bank being overly aggressive like other major central banks because the country’s inflation rate remains relatively benign compared with other countries amid active government intervention.
He foresees another 25 bps hike in the final MPC meeting in early November this year.
The inflation rate, as measured by the Consumer Price Index (CPI), in May this year rose by 2.8% compared with the same month of the preceding year.
The increase once again surpassed the average inflation for the period 2011 to May 2022 (1.9%).