Malaysia may cut Base Lending Rate in June

Malaysia may cut its base lending rate by 0.75 to one percentage point from a current 8.5 pct in June to stimulate economic growth, Finance Minister Daim Zainuddin said.

The last cut, of 0.5 pct, was effected by banks and finance companies on April 1 following a Central Bank directive.

The lending rate has been declining in recent months because the Central Bank has injected more funds into the economy, Daim told an assembly of the dominant Malay-based United Malays National Organisation party.

Daim, who is also the party’s Treasurer General, said Malaysia’s gross domestic product growth in 1987 is likely to exceed the one pct forecast in his 1987 budget presented last year. He gave no details of the expected rise.

GDP growth in 1986 was 0.5 pct.