Interest rates are on the way up as central banks across the Asia Pacific use this tool to tame inflation. In Malaysia, Bank Negara has increased the Overnight Policy Rate twice so far this year from 1.75% in July 2020 and is now 2.25%. The ringgit has however softened - it is at its all-time weakest against the Singapore dollar. Willie Tanoto, Director at Fitch Ratings' Asia-Pacific Financial Institutions team explains what rate hikes can achieve.