Sina US Stock News reported on the 22nd, Beijing time, that the Bank of Malaysia unexpectedly lowered its benchmark interest rate on Wednesday to seek support for the domestic economy while global uncertainty continues, making it the first Southeast Asian country to cut interest rates since this year.

Bank Malaysia lowered the overnight policy interest rate by 25 basis points to 2.75%. Of the 26 economists surveyed by Bloomberg, only 2 anticipated this outcome; the rest predicted interest rates to remain unchanged.

As the Malaysian economy began to feel the pressure of a global slowdown last year, the central bank is taking steps to boost confidence in the economy. As economic growth slowed in the third quarter, the central bank lowered its statutory reserve ratio requirements in November last year.

Bank Malaysia said in an email statement that adjusting policy interest rates “is a pre-emptive measure aimed at ensuring an improvement in the growth trajectory when prices are stable.”

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After a year of sluggish performance in the face of external risks, the Malaysian economy has shown signs of recovery. The manufacturing PMI for December showed that factory output expanded for the first time in 15 months. Industrial output increased 2% year on year in November, the biggest increase in five months.

Bank Malaysia cut interest rates once last year by 25 basis points, which is less relaxed than many other Southeast Asian countries. In November of last year, the bank unexpectedly lowered the bank's statutory reserve ratio to help improve liquidity.