Malaysia Central Bank Cut Rate 25 bps To 3.25%
Monday, the Malaysian central bank lowered its key interest rate to 3.25% from 3.5%. Economists had forecast the central bank to leave the base rate unchanged.
The Bank Negara Malaysia said in a statement, "The ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.50 percent and 3.00 percent respectively".
The central bank also cut the Statutory Reserve Requirement to 3.5% from 4%, which will take effect on December 1.
Inflation is expected to moderate significantly, especially in the second half of 2009, the central bank said.
"Going forward, the global economic and the international financial conditions are expected to continue to remain volatile and uncertain. Bank Negara Malaysia will monitor closely the evolving developments and will undertake the appropriate policy response to avoid a severe economic downturn", the central bank said.
Sources :
- RTTNews : Malaysia Central Bank Lowers Key Policy Rate By 25 bps To 3.25% | 11/24/2008 7:07 AM ET.
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