# Malaysian central bank to join tightening binge | articles | ING THINK

> ING expects Bank Negara Malaysia to raise its overnight policy rate by 25 basis points to 3.25% at its January 25 meeting. The bank cites strong growth, negative real rates and an undervalued ringgit as reasons for tightening.

- Date: 2018-01-19 · published 2018-01-19T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/67250-malaysian-central-bank-to-join-tightening-binge-articles-ing-think
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

A rate hike tends to attract capital and support the ringgit against the dollar. That lowers the ringgit cost of imported inputs but can slow the domestic economy and weigh on the palm oil and feed demand that depends on it.

## Read by commodity

- USDMYR: bearish ▼

## Sources

- think.ing.com: https://think.ing.com/articles/malaysian-central-bank-to-join-tightening-binge/

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