US clouds Malaysia rate path with surprise 25% tariff threat

The surprise US decision to raise its threatened tariff on Malaysia to 25% means trade will almost certainly dominate the Southeast Asian nation’s interest rate decision on Wednesday.

Analysts were split on the rate outlook before the US raised its proposed tariff from 24% in a letter Monday, with 12 of 23 economists surveyed by Bloomberg having expected Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate by a quarter point to 2.75%.