Recession Is On The Cards?

In a highly unexpected move, Malaysia's Central Bank cut its interest rates by 50 basis points to 2 per cent on Tuesday due to rising concern about the country’s economic growth.

The Central Bank also cut the commercial banks’ statutory reserve requirement (SRR) by 100 basis points to 1% effective March 1.

This was the third straight rate cut in as many meetings and came after a shock 75 basis point cut last month.

Despite Malaysia Government's constant denial of possible recession, the latest measures clearly indicate that the economy is all but well, and is deteriorating at an alarming rate! Perhaps, the feared word "recession" is truly on the cards!