KUALA LUMPUR - Malaysia's central bank on Tuesday slashed its key interest rate to the lowest since 2009, and left the door open for further cuts in case the trade-reliant nation's economy suffers prolonged damage from the coronavirus pandemic.
"The Bank will utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery," the central bank's monetary policy committee said in a statement. Malaysia, which until mid-April had the highest number of infections in Southeast Asia, has defended its decision to relax curbs. Health authorities on Monday reported 55 new coronavirus cases, raising the total to 6,353 cases. No fresh deaths were reported, and so far 105 people have died in Malaysia.
The central bank said it expects headline inflation to be in negative territory this year, dragged down by weak global oil prices. Underlying inflation is also expected to be subdued on weaker domestic growth prospects and labour market conditions.