Malaysia’s key rate to increase to 3% in 1Q23

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KUALA LUMPUR: Malaysia’s central bank will lift its key interest rate to pre-pandemic levels by the first quarter of 2023 as inflation pressures linger while the economy rebounds, according to a Bloomberg survey of economists.

Bank Negara is forecast to increase its overnight policy rate by 25 basis points in three moves through end-March next year, bringing the rate to 3% that was last seen in January 2020, a survey showed.

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