Malaysia raises rates 25bp, as hinted

The central bank of Malaysia has increased the overnight policy rate from 2 to 2.25 per cent, with the floor and ceiling rate trading band moved to 2 and 2.5 per cent. Kuala Lumpur had hinted heavily at the last rate meeting, at which rates were held. Recovery is thought to be entrenched now, with strong growth and improving internal and external demand. The Malaysian economy grew by 184bn ringgit ($54.6bn) in Q4, up 6.5 per cent on the previous quarter.