JPMorgan predicts Malaysian central bank to raise interest rate by 25 basis points in fourth quarter, raising economic growth forecast

JPMorgan predicts that the Bank of Malaysia will raise its policy benchmark interest rate by 25 basis points in the fourth quarter and raise its economic growth forecast for Malaysia. JPMorgan expects Malaysia's economic growth rate to reach 5% in 2026, compared to the previous estimate of 4.6%. Malaysia's trade surplus in May exceeded market expectations. JPMorgan believes that the Malaysian economy will maintain growth and expects the Bank of Malaysia to raise interest rates by 25 basis points in the fourth quarter of 2026.