2026-01-16 09:22:12

While global central banks are still playing the rate cut card, the Bank of Malaysia is brewing a major shift. According to the latest warning from Barclays, this central bank is very likely to initiate a rate hike cycle in May, with a rise of 25 basis points — some analysts even believe there will be action as early as March.

Looking back at last year's operations, the Bank of Malaysia lowered its benchmark interest rate to 2.75% to hedge against external risk pressures. But the turning point came when the local economic growth outperformed expectations, giving the central bank the confidence to shift towards tightening policies.

The January meeting was a critical moment. The market expected the central bank to hold steady, but a hawkish shift in tone would serve as a real signal. This policy uncertainty is fueling market divergence — some are bullish, others cautious, and volatility is bound to increase.

For the crypto market, this is no small matter. Every shift in global monetary policy influences the pricing logic of digital assets. When a regional central bank begins considering rate hikes, market liquidity expectations change, which in turn affects trading activity and price directions. Keeping a close eye on central bank movements across countries has become an essential lesson for crypto investors.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
5
Repost
Share

Comment

0/400

just_another_fish

· 8h ago

The Malaysian central bank is up to something again. As soon as the interest rate hike signal was announced, liquidity across Asia became tight, making life even harder for our crypto circle.

View OriginalReply0

StakeOrRegret

· 8h ago

The Malaysian central bank is about to make a move, and liquidity tightening is unavoidable. Interest rate hike in May? I bet they moved in March; central banks all love sneak attacks. So now, is it time to buy the dip or run? I honestly don't know. Crypto is really just being led around by the nose by central banks. Once liquidity tightens, all coins become paper. You must keep a close eye on the actions of central banks worldwide, or you'll be harvested in no time. The interest rate hike cycle is here, and short-term volatility is inevitable.

View OriginalReply0

ImpermanentPhilosopher

· 8h ago

The Malaysian Central Bank's move is quite bold; they dared to pivot when the economy exceeded expectations. While other central banks are still battling with rate cuts, they have already started tightening liquidity. Interesting. Once the rate hike expectation emerged, liquidity will definitely be re-priced, and the crypto market will have to tremble along... The signal to pivot is even more aggressive than actual actions. The January meeting must be closely watched; a change in wording caused the market to start splitting. Speaking of this round of central bank actions, it shows that economic data is the real truth, more reliable than any forecast. Malaysia daring to operate counter to the global rate cut trend indicates there’s something behind it. There will definitely be chain reactions later. The most painful aspect of rate hike expectations is liquidity exhaustion, which directly affects trading volume. Investors need to pay close attention to this.

View OriginalReply0

AirdropSweaterFan

· 8h ago

Malaysia's sudden shift indeed stirred the waters. Once the rate hike expectations emerged, the crypto circle started to get restless. Rate hikes in May? I think it might come even earlier. This pace is hard to keep up with. The shift in monetary policy definitely needs to be watched closely, or else it's easy to get caught off guard. Central banks, stop playing heartbeat games and give us some certainty. When liquidity tightens, meme coins are the first to suffer. This pattern is too obvious. With the rate hike cycle coming, we need to reconfigure our positions again. It's troublesome. Basically, it's waiting for the wording of the January meeting. The implied tone is more important than the official statement. Malaysia's economy is picking up, so a rate hike is normal. It's just that the impact might be a bit broad. How long will this wave of uncertainty last? It's really annoying.

View OriginalReply0

OneBlockAtATime

· 9h ago

Malaysia's move is quite interesting; the whole world is easing, and it is tightening by raising interest rates. Liquidity is tightening, so how can crypto still rise? If we don't see a 25bp hike in March, we'll wait until May. Anyway, other central banks are easing, and this uncertainty is pretty frustrating. They dare to pivot when the economy exceeds expectations—quite bold. It seems the situation in the Asia-Pacific region is about to change. Once the interest rate hike cycle starts, we will need to recalculate—this will be tough. Central banks are all playing their games; we need to keep up with the pace or risk getting caught off guard.

View OriginalReply0