The Malaysian government’s monetary policy has focused on spurring economic growth given the receding pressures in the country’s inflation.
The Economic Report 2009/ 2010 released by the Malaysian Finance Ministry on Friday said that the Bank Negara Malaysia (BNM), the country’s central bank, lowered the Overnight Policy Rate (OPR) twice in January and February 2009.
The bank’s move led to a lower average base lending rate of commercial banks of 5.89 percent in February 2009 and 5.53 percent in March this year, said the report.
While the Malaysian government has been stressing the importance of ensuring credit accessibility, the bank’s move further eased the burden of borrowers by reducing borrowing costs.