Malaysia Raises Rate First Time in 3 Years on Faster Growth

Malaysia raised its key interest rate for the first time in more than three years after economic growth quickened and as the central bank seeks to curb the risk of financial imbalances.

Bank Negara Malaysia increased the overnight policy rate by 25 basis points to 3.25 percent, it said in Kuala Lumpur yesterday. The decision was predicted by 15 of 21 economists surveyed by Bloomberg News, while six forecast no change. Future moves will depend on the balance of risks for growth and inflation, it said in a statement after the decision.