KUALA LUMPUR: Malaysia's central bank unexpectedly raised its benchmark interest rate from a historical low on Wednesday, as rising commodity prices, strained supply chains and strong demand conditions fanned inflationary pressures.
Bank Negara Malaysia (BNM) raised its overnight policy rate to 2% from the record low of 1.75%. It was the first hike since July 2020, when rates were slashed to a historic low to combat the impact of the Covid-19 pandemic.
