Malaysia’s central bank has finally joined its rate-cutting peers, lowering its benchmark interest rate for the first time in five years to support the economy.

Malaysia's central bank cut its benchmark interest rate MYINTR=ECI for the first time in five years on Wednesday, as it looks to support the economy amid a weaker growth outlook and rising uncertainty in global trade.

Inflationary pressure in the country is currently being influenced by global uncertainties, including US tariff policy developments and rising geopolitical tensions. These risks could heighten volatility in global financial markets and commodity prices.