Malaysia Central Bank Cuts Key Rate By 50 Bps

Malaysia's central bank reduced its interest rate by 50 basis points to cushion the impact of the economic shock caused by the coronavirus, or covid-19, pandemic.

The Bank Negara Malaysia on Tuesday cut the overnight policy rate to 2.00 percent from 2.50 percent.

The ceiling and floor rates of the corridor of the OPR were correspondingly reduced to 2.25 percent and 1.75 percent, respectively.

The bank had earlier reduced its rate in January and March.

The bank said it will utilize its policy levers as appropriate to create enabling conditions for a sustainable economic recovery.

Policymakers observed that economic conditions would be particularly challenging in the first half of the year. However, the fiscal stimulus measures along with monetary easing will provide some support to the economy.

The outlook for growth continues to be subject to a high degree of uncertainty, particularly with respect to developments surrounding the pandemic, the bank said.

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