bank negara
KUALA LUMPUR: Bank Negara Malaysia's Monetary Policy Committee (MPC) slashed interest rates by 50 basis points to 2% which is the lowest level since 2010.
The ceiling and floor rates of the corridor of the Overnight Policy Rate PR are correspondingly reduced to 2.25%t and 1.75%, respectively.
Global economic conditions have weakened significantly. Measures to contain the Covid-19 pandemic have disrupted economic activity across most economies.
Recent indicators show that the global economy is already contracting, with global growth projected to be negative for the year. Financial conditions have also tightened amid elevated risk aversion and uncertainty. Substantial policy stimuli introduced by many economies, coupled with the gradual easing of containment measures globally, would partially mitigate the economic impact of COVID-19. Growth prospects should improve in 2021 with the expected containment of the pandemic.
Bank Negara's decision on Tuesday to reduce the overnight policy rate (OPR) was expected as the economy undergoes a contraction due to the Covid-19 pandemic that had had battered countries around the world.
Bloomberg's survey said it had expected the reduction of the OPR rate by a bigger-than-usual 50 basis points was to help cushion the economy just as the government begins relaxing restrictions put in place to contain the coronavirus pandemic, Bloomberg reported.
At 2%, this was the lowest level since 2010, from 2.5%, according to 14 of 20 economists surveyed by Bloomberg
https://www.thestar.com.my/business/business-news/2020/05/05/bank-negara-slashes-interest-rates-by-50bp-to-lowest-since-2010
