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UOB Global Economics says Bank Negara Malaysia faces growing pressure to raise its overnight policy rate faster. The pressure comes from the Fed's aggressive hikes, rising food and energy prices, the Russia-Ukraine conflict, COVID containment in China and tighter global financial conditions.
UOB warns that a delayed response could cause excessive ringgit volatility in the second half of 2022.
Currency volatility raises the risk of swings in the ringgit cost of imported feed ingredients and palm oil. Faster domestic rate hikes could strengthen the ringgit but would raise financing costs for feed producers.
ringgitplus.comNur Adilah RamliJun 22, 2022Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
