The Central Bank of Myanmar has announced a further 1 per cent cut to interest rates on Tuesday in response to growing economic uncertainty amid the global spread of COVID.

The CBM said it plans to reduce bank deposit rates in Myanmar to a minimum of 6.5 per cent from April 1, while lending rates will not exceed 11.5 per cent for collateralised loans and 14.5 per cent for other unsecured loans.

The announcement comes less than two weeks after CBM first cut rates by 0.5 per cent on March 13.

At a glance:

• The Central Bank of Myanmar has announced a further 1 per cent cut to interest rates in response to the spread of COVID-19. 
• The CBM said it plans to reduce bank deposit rates in Myanmar to a minimum of 6.5 per cent from April 1, while lending rates will not exceed 11.5 per cent for collateralised loans and 14.5 per cent for other unsecured loans.
• Myanmar has confirmed its first two cases of COVID-19.

During that time Myanmar has recorded its first two positive COVID-19 cases, including a 26-year-old man who had returned to Yangon from the UK, and a 36-year-old US Green Card holder who travelled to western Chin state.

Parts of the country have already felt the economic effects of the outbreak, with the Myanmar Times reporting several garment factories in Myanmar were forced to shut down due to disruption in the raw material supply chain.

According to the Times, at least 20 out of the 500 factories in Myanmar had closed shop as of last week, leaving more than 10,000 potentially unemployed.

Click here for more news from the Central Bank of Myanmar.

Sources: Myanmar Times, Reuters

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