Kuala Lumpur – Saba:
The Malaysian central bank announced on Thursday a reduction in its benchmark interest rate for the first time in five years, lowering it by 25 basis points to 2.75%. This marks the first rate cut since July 2020.
In its statement, the bank explained that the balance of risks to growth prospects remains tilted to the downside, due to factors such as slowing global trade, weak sentiment, and lower-than-expected commodity output.
It added that the rate cut is a proactive move aimed at sustaining Malaysia’s steady growth path amid expectations of moderate inflation.
The decision comes after U.S. President Donald Trump raised tariffs on Malaysia to 25%, following through on earlier threats.
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