Malaysia lowers basic interest rate first time in seven years

Hanoi (VNA) – The Malaysian government on July 13 decided to lower the basic interest rate for the first time in seven years in the context of its economy struggling with weak exports and uncertain global economic prospects.

In a statement, the Central Bank of Malaysia, or Bank Negara Malaysia (BNM), said it decided to cut the basic interest rate by 0.25 percent to three percent.

BNM said Malaysia’s exports are predicted to continue a weak trend due to declining demand from its major trade partners.

BNM’s decision was announced after Singapore and Indonesia made similar moves as major central banks across the world are mulling over the possibility of loosening monetary policy to prop up economic growth.

In the first quarter of this year, Malaysia’s economy grew 4.2 percent, the lowest level since the third quarter in 2009 during the global economic crisis.-VNA