Malaysia’s Latest Rate Cut Takes the Interest Rate to its Lowest Level Since 2010

According to media reports, Bank Negara Malaysia (BNM) cut its interest rate by a further 50 basis points, down to 2.0%, marking its third rate cut in 2020. This is the biggest cut in more than a decade, bringing the overnight policy rate to its lowest level since 2020.

This rate cut was a measure to support the economy further, and came a day after the partial reopening of Malaysia’s economy, following a six-week movement restriction programme. Malaysia is set to fully remove all movement restrictions on the 12th of May 2020.

Malaysia’s Trade Minister, Datuk Seri Azmin Ali, anticipates the relaxed lockdown to provide a boost to growth and investment as business activity...