Malaysia’s 4th Central Bank Rate Cut of 2020

July 8, 2020

There’s been a central bank interest rate cut in Malaysia, the fourth so far this year. The latest change in the overnight policy rate was a reduction of 25 basis points to 1.75%. Earlier cuts of 25 basis points were enacted in January and March followed by a 50-bp move in May. Bank Negara Malaysia‘s released statement observes that GDP contracted sharply last quarter but assumes recovery in the second half of 2020. “The pace and strength of the recovery, however, remain subject to downside risks emanating from both domestic and external factors. These include the prospect of further outbreaks of the pandemic leading to re-impositions of containment measures, more persistent weakness in labour market conditions, and a weaker-than-expected recovery in global growth. Underlying inflation is expected to be subdued and within expectations.”

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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