In its report today, the research firm also noted that the country’s central bank hiked the rate in May, lifting it from the record low where it had languished for nearly two years.

BNM’s two-day MPC meeting is scheduled to start tomorrow.

MIDF Research is also expecting BNM to “consider another rate hike of 25bps” following the continuous rise in core inflation, reflecting solid underlying domestic demand.

“In addition, the upbeat momentum in distributive trade sales, dip in unemployment rate to a new pandemic low at 3.9% in April 2022 and the double-digit expansion rate of external trade provide positive signals of strong recovery in the economy,” it said in a note today.

At its third MPC meeting in May, the central bank increased the OPR by 25 basis points to 2%.