Bank Negara rate hike is timely move

IT had been so well flagged at its last monetary meeting that it didn't surprise anyone when Bank Negara Malaysia finally raised interest rates last week. The overnight policy rate was raised 25 basis points to 3.25 per cent, the first hike in three years. The central bank described the move as "normalisation" of monetary policy, presumably a reference to the eventual rate hikes expected in the US post-taper. It's about time.

There were various reasons for a hike before this. The weak ringgit, for...

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