We have also written about the urgency in preventing a second wave of “economic virus” under the new normal of stringent standard operating procedures (SOPs) as we work to keep the health crisis from flaring up again. That includes lowering interest rates, for a period, to reduce the burden on businesses and individuals most affected by the pandemic. We wrote that based on yield differentials against most developed countries, there is room for Bank Negara Malaysia to cut rates.
The Covid-19 pandemic and resulting varying degrees of lockdowns on a global scale must count as one of the most unexpected events in recent memory. It has certainly upended the upbeat global economic consensus forecasts at the start of the year.
Over the last few months, we have covered a wide range of topics related to the outbreak, including its impact on corporate liquidity and solvency, the economic fallout and shape of the recovery as well as our behavioural changes, some of which will serve to hasten unfolding secular trends.
