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Malaysia needs to revise down its economic growth forecast, central bank governor says
Malaysia's central bank governor said the country needs to lower its economic growth forecast for this year.
Malaysia needs to revise down its growth forecast for this year to 5.5% from 4.5% due to uncertainty over trade and tariffs, its central bank governor said.
However, Bank Negara Malaysia Governor Abdul Rashid Ghafoor told an IMF event in Washington on Wednesday that the Southeast Asian country was in no hurry to revise its forecasts and would instead watch how global trade conditions develop.
Unless the two countries reach a deal, Malaysian exports to the United States will face a 24% tariff in July.
Malaysia's trade minister and second finance minister are currently in the United States for talks with the U.S. trade representative and other officials.
Abdul Rashid said Malaysia is in a strong position to weather the current global economic conditions, given last year’s better-than-expected 5.1% economic growth, strong domestic demand, rising investment activities and recovering exports.
Abdul Rashid added that Malaysia's 3% benchmark interest rate level supports economic growth and reflects the central bank's outlook on inflation.
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