KUALA LUMPUR — Malaysia’s central bank cut its benchmark interest rate by a quarter point on Wednesday to 2.75% from 3%, its first change in 25 months and its first easing in five years, as U.S. President Donald Trump’s “reciprocal” tariffs become an imminent economic threat.
The last time Bank Negara Malaysia cut the overnight policy rate was in July 2020. The central bank had raised the rate by a total of 125 basis points between May 2022 and May 2023, from a record low of 1.75% to 3%. The rate had been steady since July 2023.
