Asia Malaysia Malaysia slashes rates to fight virus impact

Malaysia slashes rates to fight virus impact

Author

Date

Category

- Advertisement -

Malaysia’s central bank on Tuesday slashed interest rates to their lowest level since the 2009 global financial crisis as the coronavirus pandemic batters the economy.

The Southeast Asian nation has joined other countries around the world in easing monetary policy as the virus shutters businesses and confines people to their homes.

Bank Negara Malaysia slashed the rate by 50 basis points to 2.00 percent, as expected by economists, in its third cut this year.

It came a day after the government allowed most businesses to reopen after a six-week lockdown.

- Advertisement -

Malaysia’s outbreak has been small — it has recorded about 6,000 cases and 100 deaths — but the prime minister has said the curbs have so far cost the economy 63 billion ringgit ($14.6 billion).

“Global economic conditions have weakened significantly,” the bank said in a statement.

“Widespread containment measures globally, international border closures and the consequent weak external demand environment” will hit Malaysia’s economy, it added.

The government has announced stimulus measures worth billions of dollars to blunt the impact of the virus, including tax breaks and cash aid.

With uncertainty over how fast the global economy will recover from the pandemic, economists did not rule out further easing this year.

OCBC Bank economist Wellian Wiranto said that the central bank “might well cut further again if the pace of recovery… falters even after various lockdowns are lifted”.

sr/qan

© Agence France-Presse

/AFPFollow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

Shanmugam challenges opposition to debate on CECA, leaders respond

Singapore— Law and Home Affairs Minister K Shanmugam ended a speech in  Parliament on Tuesday (May 11) by challenging Non-Constituency MP Leong Mun Wai to a debate on CECA, the India-Singapore Comprehensive Economic Cooperation Agreement.  Mr Leong, who is from the Progress...

K Shanmugam: If SG goes down racist route, eventually all Indians can be a target of hate

Singapore—In the wake of a hate crime last Friday (May 7) when a 55-year-old Singaporean-Indian woman was kicked in the chest and called racial slurs, racism and xenophobia were discussed in Parliament on Tuesday (May 11).  Minister for Law and Home Affairs...

Van beats traffic light and almost hits a woman pushing a baby in a stroller

Singapore - A Toyota Hiace van beat the traffic light and almost hit a woman who was crossing the road, pushing a baby in a stroller. Camera footage from another car showed that the Toyota Hiace driver picked up speed instead of...
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

Theindependent