Malaysia slashes rates as exports flag

Bank Negara Malaysia surprised markets on Wednesday, slashing its key rate by 75 basis points to 2.5%.

The majority of analysts had expected a quarter-point cut, but a significant minority forecast a 50-basis-point lowering.

The central bank also cut its reserve requirement from 3.5% to 2%, effective from 1 February.

The central bank's cut came on the back of a further fall in inflation and signs that the recession in the major industrial economies was impacting export earnings.

"The sharper

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: