KL cuts intervention rate

KL cuts intervention rate

KUALA LUMPUR (AFP): Malaysia's central bank reduced its three- month intervention rate from 6.5 percent to 6.0 percent Monday.

Bank Negara Malaysia governor Ali Abul Hassan Sulaiman said the cut reflected the "moderating trend in the expected inflation rate" and would help sustain "recent positive developments" in the economy.

"It is expected to result in a further easing of lending rates to support commercial activity," he said.

With the half a percentage point cut, the ceiling base lending rates are expected to fall from 7.67 percent to 7.25 percent for commercial banks and from 9.02 percent to 8.50 percent for finance companies.

Ali Abul also announced immediate cuts in funding rates and maximum lending rates for special funds for small and medium- sized industries, low and medium-cost housing and new entrepreneurs.