Malaysia cuts key rate to 3.25pc

MALAYSIA'S central bank cut its key rate to 3.25 per cent from 3.50 per cent today, the first move in over 2-1/2 years, and signalled it was ready to cut rates further to avoid a severe economic downturn.
It also cut the reserve requirement for commercial banks to 3.5 per cent from 4 per cent, effective from December 1 so as to boost liquidity.
Most economists in a Reuters poll had expected rates to be left unchanged today for the 21st rate meeting in a row, albeit by a narrow margin of 6-5.