Malaysia Ringgit and Economy Face Tariff Risks, Analysts Say

Tariff concerns will likely weigh on Malaysia’s currency, stocks and economy in the near term, according to analysts, after the country’s central bank cut its benchmark interest rate for the first time in five years.

Bank Negara Malaysia called its decision a ‘preemptive measure’ in the face of growing risks for the Southeast Asian nation’s economy, given slower global trade, weaker sentiment and lower-than-expected commodity production. The policy easing was a closely called outcome, with 13 of 23 economists surveyed by Bloomberg News expecting a rate reduction.