KUALA LUMPUR (May 5): Bank Negara Malaysia (BNM) has cut its overnight policy rate (OPR) by 50 basis points (bps) to 2%, a level last seen during the 2008-09 global financial crisis.
In a statement issued after its Monetary Policy Committee meeting today, BNM said the ceiling and floor rates for the OPR have been reduced to 2.25% and 1.75% respectively.
The central bank noted that with this latest cut, the OPR has been reduced by a total of 100bps since the start of the year, complementing the other monetary and financial measures it made, as well as fiscal measures announced this year.
BNM had cut the OPR by 25bps to 2.75% in January, before making another 25bps cut in March to 2.5%.
The last time the central bank made a 50bps rate cut to 2% was on Feb 24, 2009.
BNM noted that global economic conditions have weakened significantly, with measures to contain Covid-19 causing economic disruption worldwide.
“Recent indicators show that the global economy is already contracting, with global growth projected to be negative for the year. Financial conditions have also tightened amid elevated risk aversion and uncertainty.
“Substantial policy stimuli introduced by many economies, coupled with the gradual easing of containment measures globally, would partially mitigate the economic impact of Covid-19.
“Growth prospects should improve in 2021 with the expected containment of the pandemic,” BNM said.
The central bank said widespread containment measures implemented globally, coupled with international border closures and the following weak external demand, will exert a larger drag on Malaysia’s domestic economic activity.
It noted that the Movement Control Order (MCO), while necessary to contain the spread of the virus, has also constrained production capacity and spending.
Both labour market conditions and economic conditions are expected to be challenging, BNM said, adding however that the fiscal stimulus measures with monetary and financial measures will offer some support to the economy
“With more businesses allowed to operate under the Conditional MCO, economic activity is projected to gradually improve. The outlook for growth continues to be subject to a high degree of uncertainty, particularly with respect to developments surrounding the pandemic,” it said.
The central bank forecasted inflationary pressures to be muted this year, with the average headline inflation to be negative on account of substantially lower global oil prices.
In that sense, Malaysia’s economic outlook will be significantly impacted by global oil and commodity prices, on top of constantly shifting demand conditions, it said.
Underlying inflation is expected to be subdued given expectations of weaker domestic growth prospects and labour market conditions.
BNM said Malaysia’s financial sector is sound, with financial institutions operating with strong capital and liquidity buffers.
Liquidity is deemed to be ample at this juncture, further augmented by the central banks’ liquidity injections — with BNM injecting RM42 billion since March in additional liquidity via the outright purchase of government securities, reverse repos and the reduction in the Statutory Reserve Requirement.
BNM added that it is ready to provide liquidity in the interbank market to ensure orderly market conditions, which are conducive to support financial intermediation activity.
“The Monetary Policy Committee will continue to monitor the outlook for domestic growth and inflation. The bank will utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery,” it said.
So forumers.. What do u think? Are we into big recession
Post time 5-5-2020 09:59 PMFrom the mobile phone|Show all posts
Bukan Malaysia saja. The whole world. C19 saga cause recession sampai 2021 analysts prediction. The practise of reducing the OPR by BNM is one of the pre-emptive approach to face the recession. Rendah OPR, rendahlah interest rates of loans made by banks. So bank takla suffer banyak sangat. Simply put.
Post time 5-5-2020 10:30 PMFrom the mobile phone|Show all posts
Anne.W replied at 5-5-2020 10:24 PM
Bkn bank...but the people's loan installment getting lower..
Yes, people's loan will get lower interest. Itu membantu public. Banks also do loan from each other sometimes. They also tanggung interests for their loans.
But i see your point. Loans interest will be lower tak kira la orang biasa, companies atau pun bank sendiri yg buat loan tu. Lower interest sangat membantu kurangkan tanggungan kewangan peminjam.
Author|Post time 6-5-2020 01:05 AMFrom the mobile phone|Show all posts
Lagubestbest replied at 5-5-2020 08:37 PM
Ekonomi (pergi balik kerja) je gawat, tapi kewangan (pergerakan wang) lebih meriah.
When economy into rescission means inflation rate are going down/decrease..hence monetary easing policy put in place(reducing OPR) to stimulate the economy cycle..
Klu ikut biz cycle malaysia ptt gerak arah recovery in 2020..hence the Msia Visit Year of 2020..tp tuhan lebih bkuasa menentukan segalanya.. Heheh
Author|Post time 6-5-2020 01:07 AMFrom the mobile phone|Show all posts
gigahertz replied at 5-5-2020 09:47 PM
bantuan tu di beri untuk di belanjakan. bukan untuk di simpan.
Depends.. Kalau beli tp semua brgn import xguna gk..
Generate income and stimulate economy ada byk cara.. Last time we campaign for belilah barangan buatan Msia.. Now, tgk la ape pula initiative dorg akan announce in the near future..
Apepun, spend wisely and be greedy when others are fearful
Post time 6-5-2020 01:14 AMFrom the mobile phone|Show all posts
Anne.W replied at 6-5-2020 01:07 AM
Depends.. Kalau beli tp semua brgn import xguna gk..
Generate income and stimulate economy ada ...
I agree.. Dlm situasi skrg kita patut utamakan barang local. Mcm masa kita gawat 97...kalo online shopping utamakn local brg... Satu sebab nk pusing duit tuh dlm negara jer.. Satu lagi of course brg dr oversea tersadai kat klia sebulan lebih br nk dpt... Huhu
Negara kita di bina dengan hasil wang cukai. kerajaan beri rakyat dalam bentuk sumbangan. yang rakyat bagi balik dalam bentuk cukai. Kerajaan sekarang ni tengah exhausted akibat tangan tangan yang lepas. mmg perlukan
banyak Cash utk bina balik negara.
Tu pasal kalau kita tengok. masa PH ambil alih negara. GST mmg takde. tapi SST di perluaskan lagi. Sebabnya negara mmg
takde cash nak run lagi. Memang negara ada memacam komoditi Petroleum , Minyak sawit , getah tapi ni semua based on
demand & Supply ada naik ada turun. Harga komoditi tidak di tentukan oleh negara kita.
Negara kita bukan macam middle East. Contoh Iran. Dulu Iran kena sekatan ekonomi dengan Amerika
selama 10 tahun. Apa Iran buat ? Barter Trade dengan Rusia & China. Iran boleh buat gitu sebab iran salah satu pengeluar
minyak dunia. kalau tak silap Iran Ranking No 7 antara 10 pengeluar minyak di dunia.
U bayangkan Tun yang dah memerintah Malaysia 22 tahun pun terpaksa akur dengan melaksanakan cukai baru.
(Sebenarnya Cukai SST tu bukanlah cukai baru. tu perluasan daripada cukai lama. Cukai SST zaman BN dulu cuma kena
pada pembekal , pemborong dan sesetengah bussiness sahaja. Tapi Cukai SST siapa niaga 500k keatas mmg kena.)
Kedai mamak yang berdaftar dengan Presma macam Restoran Nasi Kayu Kandar tu semua diorang pengecualian cukai SST
1.5 Juta. lepas siap ada kuasa utk collect 6% SST lagi.)
tu hari masa April 2019 Paypal Malaysia dah alihkan pentadbiran ke Banglore .tu hari awal Januari 2020 Kilang Danone DUmex tutup. 165 pekerja terjejas.
Ni sempena covid ni banyak hotel hotel besar stop bussiness. yang membimbangkan hotel2 ni berkait dengan
perlancongan . dan sektor pelancongan menyumbang pada pendapatan negara juga.
Sesiapa yang meniaga online siap sedia la krisis selepas June 2020. Sebab Tahun 2020 ni Raya Cina & Melayu di awal tahun.
Raya pulak jatuh a few day sebelum gaji . so duit dah banyak habis kat situ. Sepatutnya CNY & Raya Puasa tahun ni sales utk
cover June 2020 hingga Disember 2020 tapi di sebabkan Corvid 19 lagi ramai yang akan terjejas.
Melainkan kalau Kerajaan ada umumkan lagi bantuan. boleh la peniaga hidup sikit.
Post time 5-5-2020 07:28 PM
变色卡
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Post time 6-5-2020 02:56 AM
