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Malaysia cuts key interest rate for first time in five years

Inflationary pressure in the country is currently being influenced by global uncertainties, including US tariff policy developments and rising geopolitical tensions. These risks could heighten volatility in global financial markets and commodity prices.

Bank Negara Malaysia headquarters in Kuala Lumpur, Malaysia, July 31, 2019. (Photo: REUTERS)
Bank Negara Malaysia headquarters in Kuala Lumpur, Malaysia, July 31, 2019. (Photo: REUTERS)

Hanoi (VNA) – Bank Negara Malaysia (BNM) has cut its benchmark interest rate by 25 basis points to 2.75%, marking its first rate cut in five years.

The move was described as a step to support steady economic growth amid moderate inflation.

Specifically, the Malaysian central bank lowered the Overnight Policy Rate (OPR) from 3% to 2.75%.

Inflationary pressure in the country is currently being influenced by global uncertainties, including US tariff policy developments and rising geopolitical tensions. These risks could heighten volatility in global financial markets and commodity prices.

The ceiling and floor rates of the OPR were also adjusted lower to 3% and 2.50%, respectively.

The rate cut came just one day after US President Donald Trump announced new reciprocal tariffs on Malaysian goods, raising the rate from 24% to 25%. The new tariff is set to take effect on August 1 unless the two sides reach an agreement before the deadline./.

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#Bank Negara Malaysia #benchmark interest rate #US tariff policy Malaysia
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