Bank Negara makes surprise interest rate cut

Kuala Lumpur

MALAYSIA'S central bank has cut the key lending rate by 25 basis points in a bid to boost the flagging economy and minimise repercussions stemming from Britain's decision to exit the European Union.

After holding the overnight policy rate (OPR) steady at 3.25 per cent in 11 successive meetings, the monetary policy committee (MPC) surprised markets when it cut the key lending rate to 3 per cent at a meeting on Wednesday. It also reduced the ceiling and floor rates to 3.25 and 2.75 per cent respectively.