KUALA LUMPUR, Malaysia – Malaysia’s central bank has raised its key interest rate for the first time in four years ahead of general elections due by August.
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Bank Negara Malaysia on Thursday raised its overnight policy rate, used by banks to calculate interest rates, to 3.25 percent from 3 percent, citing a stronger economy. It said it was also to “prevent the build-up of risks that could arise from interest rates being too low for a prolonged period of time.”
The central bank last hiked the interest rate in July 2014. In July 2016, it cut the rate to 3 percent shortly after Britain’s Brexit vote.
The government predicts 5.5 percent growth in the economy this year, with the ringgit currency strengthening.
