KUALA LUMPUR, May 5 — Bank Negara Malaysia has reduced its overnight policy rate yet again after earlier cuts in January and March, slashing it today by 50 basis points to 2.00 per cent.
The central bank said the decision was made in its Monetary Policy Committee meeting today in response to deteriorating business conditions resulting from the Covid-19 pandemic and countries’ measures to contain it.
“With the decision today, the OPR has been reduced by a total of 100 basis points, complementing other monetary and financial measures by Bank Negara Malaysia as well as fiscal measures this year.
“Together, these measures will cushion the economic impact on businesses and households and support the improvement in economic activity,” BNM said in a statement announcing the rate cut.
The OPR is now the lowest it has been in a decade.
In March, BNM cut the key rate by 25 basis points to 2.50 per cent and was expected to lower it further even before the Covid-19 pandemic.
Before that, it lowered the OPR by the same amount in January.
The central bank had previously predicted that the country’s economic growth could slow to as low as -2.0 per cent as a result of the movement control order, but the prediction was only for the first two phases.
