• Property

When rates are cut, it means our Bank Negara Malaysia would like to encourage consumption, spending, investments into the economy. With lower rates, people would be tempted to buy a property, perhaps buy a new car, maybe start a business etc. In other words, lower interest rate could start a potential multiplier effect. The only reason why this could be needed is that there are signs that the economy is slowing down. Maybe the numbers have started to stagnate? Maybe the numbers are showing a slowing down of growth.