Bank Negara Malaysia (BNM) today reduced the Overnight Policy Rate (OPR) by another 25 basis points to 1.75 per cent, a record low since the floor was set in 2004.
In a statement today, it said the Monetary Policy Committee (MPC) decided to have the ceiling and floor rates of the corridor of the OPR correspondingly reduced to 2.00 per cent and 1.50 per cent, respectively.
"The impact of COVID-19 on the global economy is severe. Global economic conditions remain weak with global growth projected to be negative for the year," it said.
It added that the reduction in the OPR will provide additional policy stimulus to accelerate the pace of economic recovery.
"The MPC will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. The Bank will continue to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery," it said.
The central bank added that although a trough is expected in the second quarter, broad-based weakness in the labour market and precautionary behaviour by households and businesses could affect the recovery going forward.
"Several major economies have begun relaxing measures to contain the COVID-19 pandemic, leading to the gradual resumption of economic activity. Financial conditions have improved, although risk aversion remains elevated.
"Downside risks to the global outlook remain, especially if a resurgence of the pandemic necessitates the reintroduction of containment measures," it said.
For Malaysia, BNM said that the economic activity contracted sharply in the second quarter of the year, due to measures introduced to contain the pandemic globally and domestically.
"Following the gradual and progressive re-opening of the economy since early May, economic activities have begun to recover from the trough in the second quarter. The fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook," it said.
BNM also said that the projected improvement in the domestic economy is expected to be further supported by a gradual recovery in global growth conditions.
The pace and strength of the recovery, however, remain subject to downside risks emanating from both domestic and external factors.
"These include the prospect of further outbreaks of the pandemic leading to re-impositions of containment measures, more persistent weakness in labour market conditions, and a weaker-than-expected recovery in global growth," it said.
Meanwhile, BNM said inflationary pressures are expected to be muted this year as average headline inflation is likely to be negative this year, primarily reflecting the substantially lower global oil prices.
"The risks of a broad-based and persistent decline in prices are assessed to be limited as economic activity resumes and demand conditions improve. Nevertheless, the outlook remains significantly affected by global oil and commodity prices. Underlying inflation is expected to be subdued and within expectations," it added.
-- BERNAMA
Bernama
Tue Jul 07 2020
In a statement today, it said the Monetary Policy Committee (MPC) decided to have the ceiling and floor rates of the corridor of the OPR correspondingly reduced to 2.00 per cent and 1.50 per cent, respectively. -Photo Reuters
514,070 murid di sabah nikmati prasarana lebih baik
Seramai 514,070 murid dan pelajar di Sabah menikmati prasarana sekolah lebih baik hasil usaha berterusan kerajaan Persekutuan menerusi Kementerian Pendidikan dalam menaik taraf sekolah daif serta kerja-kerja penyelenggaraan bangunan sekolah di negeri itu.
Jangan politikkan isu kebajikan penjawat awam - Cuepacs
Cuepacs menggesa semua pihak tidak mempolitikkan isu kebajikan penjawat awam termasuk pengumuman kenaikan gaji oleh Perdana Menteri pada 1 Mei lepas.
Pantau Agenda Reformasi: Kedudukan Malaysia merudum, apa perlu dilakukan?
PRK Kuala Kubu Baharu: Kenaikan gaji penjawat awam bukan bahan kempen - Saifuddin
Saifuddin perkara itu sudah lama diteliti oleh Kerajaan Perpaduan dan ia dirancang untuk diumumkan pada 1 Mei lepas sempena sambutan Hari Pekerja 2024.
Badminton: Terima kasih, selamat bersara Kento Momota!
Fanatik badminton dunia akan terlepas aksi menarik dan lakaran emosi tersendiri ditampilkan oleh bekas pemain nombor satu dunia, Kento Momota.
Isu ladang musang king: Polis kenal pasti wakil rakyat untuk bantu siasatan
Polis kini sedang mengambil keterangan beberapa individu berhubung insiden menghalang penjawat awam menjalankan tugas ketika operasi penguatkuasaan di hutan simpan di Raub.
KHSB tawar 2,340 unit teres di bawah projek Rumah Selangorku di Bernam Jaya
Sebanyak 2,340 unit rumah teres akan dibangunkan di bawah projek Rumah Selangorku berskala besar pertama di negeri ini dikenali sebagai Lagenda Ardea.
Pelaburan AI perlu dimanfaatkan di setiap peringkat masyarakat
Menurut Profesor Rangkaian Komputer dan Keselamatan Siber Fakulti Sains Komputer dan Teknologi Maklumat, UPM, Prof. TS. Dr Zuriati Ahmad Zukarnain, inisiatif ini telah disusun untuk memberi panduan yang jelas dalam sokongan terhadap ekosistem pembangunan dan penggunaan teknologi AI negara.
Mesyuarat kaji penubuhan rangkaian 5G kedua Selasa depan
Ahli Lembaga Pengarah Digital Nasional BHD (DNB) akan mengadakan mesyuarat pada minggu depan bagi mengkaji laporan usaha wajar berkaitan penubuhan rangkaian 5G kedua.
DNB, Ericsson bekerjasama memangkinkan pendigitalan
Kerjasama itu menandakan inisiatif industri perintis yang akan membuka jalan kepada teknologi termaju untuk membolehkan pendigitalan perusahaan merentas pelbagai industri berbeza dan memacu Malaysia ke hadapan sebagai negara digital terkemuka.
Tentera AS edar gambar jeti maritim Gaza siap dibina
Beberapa gambar pembinaan jeti maritim oleh tentera Amerika Syarikat (AS) di Gaza untuk menghantar bantuan kemanusiaan telah diedarkan Komando Pusat AS pada Isnin.
Pemindahan pertama buah pinggang babi beri sinar kepada pesakit
Kejayaan prosedur pembedahan pemindahan buah pinggang babi ke manusia yang pertama di Amerika Syarikat (AS) disifatkan sebagai kemajuan besar di negara itu.
Ahli Parlimen AS setuju elak penutupan kerajaan sebelum tarikh akhir
Pemimpin Kongres AS telah mencapai persetujuan untuk menghalang penutupan sebahagian kerajaan persekutuan yang dijadualkan pada tengah malam Jumaat ini, kata Ahli Parlimen pada Rabu.
Rusia mahu UNSC bincang serangan AS ke atas Iraq, Syria
Rusia pada Sabtu mengecam serangan Amerika Syarikat (AS) ke atas Iraq dan Syria serta meminta mesyuarat Majlis Keselamatan Pertubuhan Bangsa-Bangsa (UNSC) untuk membincangkan isu berkenaan.
Kumpulan Pro-Palestin berhimpun di Chicago, Dewan Bandaraya gesa gencatan senjata
Kumpulan Pro-Palestin berhimpun di Dewan Bandaraya Chicago, Amerika Syarikat untuk menyatakan protes terhadap serangan Israel yang berterusan di Gaza pada Rabu.
Anak, menantu sembunyi mayat bapa demi duit pencen
Pasangan itu sanggup menyembunyikan mayat warga emas itu dalam rumah mereka selama enam tahun demi mengambil wang persaraan bulanannya.
Penutupan sempadan Mexico-AS tidak rasional - Andres
Cadangan penutupan sempadan Mexico dan Amerika Syarikat (AS) adalah mustahil dan merupakan keputusan politik yang tidak rasional.
Kongres AS setuju perjanjian perbelanjaan untuk elak penutupan kerajaan
Kongres Amerika Syarikat (AS) bersetuju dengan perjanjian perbelanjaan jangka pendek untuk menghalang kemungkinan penutupan kerajaan sehingga Mac.
Tentera AS serang 3 kapal Houthi di Laut Merah
Sekurang-kurangnya 10 anggota Houthi Yaman terbunuh selepas tentera AS menyerang tiga kapal milik kumpulan itu di Laut Merah.
AS bertanggungjawab ke atas perang Israel-Hamas
Menurut jurucakap Kementerian Luar Iran, Naseer Kaanani, AS merupakan sebahagian daripada jenayah perang yang berlaku di Gaza.