Central bank may cut key rate again as pandemic persists

KUALA LUMPUR: Bank Negara is expected to cut interest rates to a historic low next week, according to a slim majority in a Reuters poll, as it seeks to protect Malaysia’s economy from the fallout of the coronavirus pandemic.

Bank Negara will cut its overnight policy rate by at least 25 basis points (bps) to 1.75%, according to seven out of the 12 economists polled, with two of them betting on a bigger 50 bps rate reduction.