J.P. Morgan predicts that Malaysia will raise interest rates in the fourth quarter, raising the country's economic growth forecast.

JPMorgan Chase currently predicts that the Central Bank of Malaysia will raise its policy benchmark interest rate by 25 basis points in the fourth quarter, while also increasing the country's economic growth forecast. JPMorgan Chase's research report predicts that Malaysia's economic growth rate will reach 5% in 2026, up from the previous estimate of 4.6%. Benefiting from a significant increase in exports of technology products and non-tech goods, the country's trade surplus in May exceeded market expectations. Coupled with the recent signing of a memorandum of understanding between the US and Iran and some easing of economic downside risks, JPMorgan Chase believes that Malaysia's economy will continue to grow steadily, potentially prompting the central bank of Malaysia to raise interest rates by 25 basis points in the fourth quarter of 2026, tightening its loose monetary policy. JPMorgan Chase had previously predicted that the bank would maintain its interest rates unchanged this year.