Economics
Malaysia Cuts Rates to Record Low, Warns of Downside Risks
- Bank lowers rates by 25 basis points as most analysts expected
- Further outbreaks could threaten a recent pickup in activity
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Malaysia’s central bank cut its benchmark interest rate by 25 basis points to the lowest on record and warned of lingering downside risks to a economy reopening after months of lockdown against coronavirus.
The overnight policy rate was reduced to 1.75%, the lowest in records dating back to 2004, as 14 of 25 economists surveyed by Bloomberg predicted. Four had forecast a 50 basis-point cut, while seven expected no change.