Ringgit Retreats as China Easing Deepens Growth Outlook Concern
- Malaysia faces challenge from lower oil price: Morgan Stanley
- Prime minister aims to further cut fiscal deficit next year
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The ringgit fell as China’s interest-rate cut heightened concern that growth in Asia’s biggest economy and a top Malaysian export market is slowing.
The People’s Bank of China also reduced the amount of cash banks must set aside as reserves on Friday to revive an economy set for the slowest annual expansion in a quarter of a century. Malaysia’s 2016 budget last week included tax increases for high-income earners and a pledge to further lower the fiscal deficit. The macro economic outlook hasn’t changed though amid lower energy prices and weak domestic demand, according to a Morgan Stanley report on Monday.