Central Bank of Malaysia Cuts Interest Rate

March 3, 2020

Bank Negara Malaysia reduced its overnight policy rate (OPR) by 25 basis points to 2.5%, its lowest level since July 2010. This was the second cut of 2020 and brings the cumulative reduction since May 2019 to 75 basis points. Today’s move may not be the final gesture according to a released statement: “The reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.” The statement warns of disruptions to manufacturing production and projects still modest inflation this year.

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

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