Malaysia lowers key interest rate to support economic growth hinh anh 1The Bank Negara Malaysia headquarters in Kuala Lumpur, Malaysia (Photo: Bloomberg)
Kuala Lumpur (VNA) – Malaysia’s central bank on March 3 cut its key interest rate to the lowest in 20 years at 2.5 percent, with the aim to support the economy.

In its recent announcement, the Bank Negara Malaysia (BNM) said that its Monetary Policy Committee (MPC) made the decision to create a more suitable financial environment to back the growth pace of the national economy.

This is the second time BNM has lowered its key interest rate, with the first cutting by 0.25 percentage points to 2.75 percent.

The bank also said that the outbreak of the coronavirus disease (COVID-19) will affect the country’s economic growth in the first quarter of 2020, mainly in the fields of manufacturing, tourism and agriculture.

To mitigate the economic impact of the disease outbreak, the Malaysian Government released an economic stimulus package worth 20 billion RM (4.78 billion USD).

The stimulus package is targeted at tackling the impact of the outbreak, catalysing people-based growth, and encouraging quality investment./.