Malaysia cuts interest rates for first time in 7 years

AFP, KUALA LUMPUR: Malaysia yesterday cut interest rates for the first time in seven years in a shock move as the economy struggles with weak exports and an uncertain global outlook.
The decision to slash borrowing costs by 25 basis points to 3.00 percent follows similar moves by Singapore and Indonesia and comes as major central banks around the world look to ease monetary policy to kickstart growth.
"Exports are projected to remain weak following more subdued demand from Malaysia's key trading partners," Bank Negara said in a statement.
The benchmark rate has been kept steady since July 2014, when it was raised by 0.25 percentage points, but it is the first cut since 2009.
"It is a pleasant surprise. The policy cut is in tandem with other regional economies. It would support much needed growth," Kenanga Research economist Wan Suhaimi Saidi told AFP.

Malaysia cuts interest rates for first time in 7 years

AFP, KUALA LUMPUR: Malaysia yesterday cut interest rates for the first time in seven years in a shock move as the economy struggles with weak exports and an uncertain global outlook. The decision to slash borrowing costs by 25 basis points to 3.00 percent follows similar moves by Singapore and Indonesia and comes as major central banks around the world look to ease monetary policy to kickstart growth. Exports are projected to remain weak following more subdued demand from Malaysias key trading partners, Bank Negara said in a statement. The benchmark rate has been kept steady since July 2014, when it was raised by 0.25 percentage points, but it is the first cut since 2009. It is a pleasant surprise. The policy cut is in tandem with other regional economies. It would support much needed growth, Kenanga Research economist Wan Suhaimi Saidi told AFP.