Bank Negara Malaysia announced at 21 Jan’09, Overnight Policy Rate (OPR) would decrease again 75 points. That means OPR decrease 2.5 per cent. In Nov 2008, OPR was decrease 25 points; it’s 3.25 per cent. From adjustment in OPR, estimate Base Lending Rate (BLR) will decrease to 5.90 per cent instead 6.50 per cent at this moment. Check on Malaysia Base Lending Rate History for the past 20 years.

Malaysia’s central bank cut its benchmark interest rate for a second straight meeting as easing inflation allowed it to focus on sustaining economic growth amid the deepening global recession.

Bank Negara Malaysia lowered its overnight policy rate by three-quarters of a percentage point to 2.5 per cent. The size of the reduction was larger than all predictions in a Bloomberg News survey of 19 economists, where seven expected a quarter-point cut and the rest forecast the rate to be lowered by 50 basis points.

Malaysia’s 2009 growth will probably miss the government’s 3.5 per cent forecast, adding pressure on policy makers to boost spending and cut borrowing costs, the Malaysian Institute of Economic Research predicts. Malaysia Finance Minister is planning a second stimulus package to add to a RM7 billion (US$2 billion) plan unveiled in November.
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