Room for further rate cut


Record low: Economists are expecting Bank Negara to lower the OPR by another 25 basis points to a record low of 1.5%.

MALAYSIA will likely see its interest rate cut again by another quarter of a percentage point next month, according to some economists.

With inflationary pressure expected to remain subdued, while the economy is relatively weak, they note, there is a good chance that Bank Negara will lower the benchmark overnight policy rate (OPR) by 25 basis points (bps). This would bring the benchmark used by financial institutions to set their lending rates to a new record low of 1.5% from the current 1.75%.

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