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Bank of Malaysia raises interest rates by 0.25% ahead of elections

The Bank of Malaysia (BNM) has raised its key interest rate for the fourth time in a row ahead of general elections in the coming weeks. The rising cost of living and the weakening ringgit will be key issues for voters.

The BNM hiked the key interest rate by 0.25% to 2.75%.

Pressure is mounting on the BNM to curb inflation while promoting economic growth. While the campaign for the national elections on November 19 is heating up.

In a survey, nearly 80% of respondents said the government should focus on reviving and boosting the economy or on fighting poverty and addressing the cost of living.

BNM said that the tightening of U.S. monetary policy has contributed to the dollar gaining further strength. This has also impacted major and emerging market currencies, including the ringgit.

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