The 25 basis points (bps) hike in the overnight policy rate (OPR) announced by Bank Negara Malaysia (BNM) yesterday to 2.50 percent in its fifth Monetary Policy Committee (MPC) meeting of 2022 is widely expected amid continued improvements in the domestic economy.

In a note yesterday, MIDF Research said BNM highlighted that the global economy remained on an expansion path despite a slower pace and improvement in Malaysia’s labour market conditions, with domestic spending continuing to support the recovery in local economic activity...