Malaysia’s central bank on Wednesday lowered its economic growth forecast for this year and promised to maintain loose monetary policy as the country recovers from the new crown pandemic.
In its annual economic and monetary evaluation report, the bank said it now expects GDP to grow by 6-7.5% this year, compared with the previous forecast of 6.5-7.5%.
In January, novel coronavirus pneumonia cases were surging, and Malaysia was forced to re launch travel restrictions, which brought pressure to the economic recovery. With the infection rate falling, the government has relaxed these measures, and the country’s vaccination will enter the second phase next month.
“Even if the economy recovers from the pandemic, we are not completely out of the woods,” nor shamsiah Yunus, governor of Malaysia’s central bank, said in his annual report. Given this uncertainty in the strength of the economic recovery, the focus of our monetary policy in 2021 will remain loose to support a solid and sustained recovery