Bank Negara might hike rates further

KUALA LUMPUR, March 15 — Bank Negara will consider raising interest rates at its next policy meeting after a 25-basis-point hike earlier this month, Governor Zeti Akhtar Aziz told Bloomberg.

“We will review the conditions at our next monetary policy meeting and work towards further normalising if necessary,” Zeti said in an interview that the news agency said was held last week and published on Monday.

Malaysia became the third Asian central bank to hike rates when it raised its policy rate off record lows to 2.25 per cent to prevent asset bubbles forming. — Reuters. Find more

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Traderone: This could cause a chain reaction in the region. When market is driven by liquidity, the higher interest rate might drive funds away from the stock market.