The last time the central bank cut the benchmark rate was February 2009, when it was slashed by 50 basis points to 2.00%. Bank Negara Malaysia (BNM) on Wednesday cut the overnight policy rate (OPR), steady since July 2014, by 25 basis points to 3.00%. Global growth prospects have “become more susceptible to increased downside risks in light of possible repercussions from the EU referendum in the UK,” the central bank said. Inflation is not a worry at present, and the central bank on Wednesday cut its projection for 2016 to 2-3% from 2.5-3.5%. Photo:Kuala Lumpur: Malaysia’s central bank, seeing more clouds over the global economy after Britain’s Brexit vote, surprised markets by cutting its key interest rate for the first time in seven years in a bid to keep the country on a “steady growth path”.

Source: Mint July 13, 2016 11:15 UTC