Malaysia cuts key interest rate to 2.0 pc

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KUALA LUMPUR, Feb 24 (AFP): Malaysia's central bank cut its key interest rate by 50 basis points to 2.0 per cent today, saying the troubled global outlook had raised the risk of a recession in 2009.

The surprise decision represented an unprecedented third consecutive cut in interest rates, as Malaysia attempts to stave off a slowdown with official data showing steep declines in exports and industrial production.

"The downside risks to the global economic outlook have increased significantly," Bank Negara said in a statement.