Malaysia’s central bank lowered its key interest rate on Wednesday in an effort to bolster economic growth amid growing uncertainty in global trade.
Bank Negara Malaysia reduced its overnight policy rate (OPR) by 25 basis points to 2.75%, down from 3.00%, where it had held steady since May 2023.
The move was anticipated by a majority of analysts, with 17 out of 31 economists in a recent survey predicting the rate cut.
Alongside the rate adjustment, the central bank also revised the upper and lower bounds of the OPR corridor to 3% and 2.5%, respectively, according to its official statement.
This is the first time Malaysia has lowered its benchmark rate since 2019, reflecting policymakers’ concerns over slowing economic momentum and heightened global trade risks.
