# BNM Faces Growing Pressure To Increase Rates Faster

> 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.

- Date: 2022-06-22 · published 2022-06-22T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/41234-bnm-faces-growing-pressure-to-increase-rates-faster
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

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.

## Read by commodity

- USDMYR: neutral

## Sources

- ringgitplus.com: https://ringgitplus.com/en/blog/personal-finance-news/bnm-faces-growing-pressure-to-increase-rates-faster.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.