FOREX TradingCharts.com

Financial News: Malaysia Cuts Interest Rate For First Time In

Malaysia Cuts Interest Rate For First Time In Nearly 3 Years

05/07/2019 - 08:55:00 (RTTNews)

(RTTNews) - Malaysia's central bank on Tuesday slashed its interest rate for the first time in nearly three years, citing several downside risks to the economic growth outlook.

The Bank Negara's Monetary Policy Committee decided to cut the Overnight Policy Rate by a quarter-point to 3 percent. The decision was in line with economists expectations.

The previous change in the key interest rate was a quarter-point hike in January 2018, to 3.25 percent.

The latest interest rate cut was the first since July 2016. "While domestic monetary and financial conditions remain supportive of economic growth, there are some signs of tightening of financial conditions," the bank said.

"The adjustment to the OPR is therefore intended to preserve the degree of monetary accommodativeness."

Recent data suggest moderate economic activity in the first quarter of this year, the bank said. Looking ahead, slowing global demand and subdued growth of key trading partners will continue to dampen the external sector.

Meanwhile, stable labor market conditions and capacity expansion in key sectors are expected to continuing driving household and capital spending. The bank projected Malaysia's economic growth for this year in the 4.3-4.8 percent range.

"However, there are downside risks to growth from heightened uncertainties in the global and domestic environment, trade tensions and extended weakness in commodity-related sectors," the bank said.

Inflation is forecast to remain broadly stable this year.

"Today's rate cut still leaves the central bank with a sufficient interest rate buffer if economic conditions deteriorate further, but this may not be required," ING economist Prakash Sakpal said. "We expect the timely policy boost together with the favorable base effect to shore up growth in the rest of the year towards the top end of the forecast range," Sakpal added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


OECD Trims Global Growth Outlook On Trade Disputes (17 min(s) ago)
(RTTNews) - The Organization for Economic Co-operation and Development lowered the 2019 global gro ...Full Story»

Slovenia Output Prices Rise In April (02 hr(s), 02 min(s) ago)
(RTTNews) - Slovenia output prices rose in April, figures from the Statistical Office of the Repub ...Full Story»

UK Manufacturing Orders Lowest Since Late 2016: CBI (02 hr(s), 22 min(s) ago)
(RTTNews) - UK manufacturing orders hit its lowest level since October 2016, the Industrial Trends ...Full Story»

Thailand Cuts Outlook After Economy Logs Weakest Growth Since 2014 (03 hr(s), 32 min(s) ago)
(RTTNews) - The Thai economy grew at the slowest pace in more than four years in the first quarter ...Full Story»

OECD Downgrades 2019 Global Growth Projection (03 hr(s), 45 min(s) ago)
(RTTNews) - The Organization for Economic Co-operation and Development downgraded the global growt ...Full Story»

Turkey Consumer Confidence Eases In May (04 hr(s), 50 min(s) ago)
(RTTNews) - Turkey's consumer confidence eased in May after rising in the previous month, figu ...Full Story»

Denmark Consumer Confidence At 8-Month High (05 hr(s), 02 min(s) ago)
(RTTNews) - Denmark's consumer confidence grew to the highest level in eight months in May, su ...Full Story»

New Zealand Credit Card Spending Rises In April (05 hr(s), 37 min(s) ago)
(RTTNews) - New Zealand's credit card spending increased in April, after falling in the previo ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

OECD Trims Global Growth Outlook On Trade Disputes

05/21/2019 - 08:56 AM (RTTNews)
(RTTNews) - The Organization for Economic Co-operation and Development lowered the 2019 global gro ...Full Story>>

Slovenia Output Prices Rise In April

05/21/2019 - 07:11 AM (RTTNews)
(RTTNews) - Slovenia output prices rose in April, figures from the Statistical Office of the Repub ...Full Story>>

UK Manufacturing Orders Lowest Since Late 2016: CBI

05/21/2019 - 06:51 AM (RTTNews)
(RTTNews) - UK manufacturing orders hit its lowest level since October 2016, the Industrial Trends ...Full Story>>

Thailand Cuts Outlook After Economy Logs Weakest Growth Since 2014

05/21/2019 - 05:41 AM (RTTNews)
(RTTNews) - The Thai economy grew at the slowest pace in more than four years in the first quarter ...Full Story>>

OECD Downgrades 2019 Global Growth Projection

05/21/2019 - 05:28 AM (RTTNews)
(RTTNews) - The Organization for Economic Co-operation and Development downgraded the global growt ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.