The central bank of Malaysia boosted borrowing costs, marking the metric's first increase in more than 36 months, according to Bloomberg.
Policy makers with the Bank Negara Malaysia were prompted to boost rates on Thursday by economic data noting the hastening pace of growth and development and a drive to temper risks associated with financial imbalances. The overnight policy rate now stands at 3.25 percent, an increase of 25 basis points.
"Recent economic data has been strong, which suggests the economy is healthy enough to withstand a tightening in monetary policy," analyst Krystal Tan with Capital Economics Ltd. in Singapore told the media outlet as the trade week came to a close. "We see scope for another increase by the end of the year."
The central bank of Malaysia has distinguished itself as the first of South Asian central banks to increase rates this year, which serves as a demonstration of the country's economic growth.
Reuters reports the rate hike was anticipated as an effort to curb inflation and put a lid on increases to consumer debt in the Asian nation.
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