KUALA LUMPUR: Bank Negara Malaysia has “ample room” for monetary policy adjustments as the country braces for the impact from the Covid-19 coronavirus outbreak. Asked whether Bank Negara would reduce its overnight policy rate further in view of the macroeconomic challenges, its governor Datuk Nor Shamsiah Mohd Yunus said the central bank has “ample room” for monetary policy adjustments. The central bank unexpectedly cut its overnight policy rate last month by 25 basis points to 2.75%, the lowest since March 2011. Bank Negara said the overall impact of the virus on the Malaysian economy will, however, depend on the duration and spread of the outbreak as well as policy responses by authorities. As for the ringgit, Bank Negara said the performance in 2020 would continue to be influenced by external developments.

Source: The Star February 12, 2020 04:38 UTC