Rate hike signals M'sia's sanguine economic prospects

Another 25 basis points (bps) hike in the overnight policy rate (OPR) announced by the Bank Negara Malaysia (BNM) today has signalled Malaysia’s sanguine economic prospects, driven by strengthening domestic demand and strong export growth, says MIDF Research.

It said BNM foresees growth momentum on a firmer footing, thanks to the transition to endemicity and the reopening of international borders, which have resulted in stronger economic activity, a lower unemployment rate and more people entering the job market rate and a better income outlook.