MALAYSIA MAY CUT BASE LENDING RATE IN JUNE
Malaysia may cut its base lending
rate by 0.75 to one percentage point from a current 8.5 pct in
June to stimulate economic growth, Finance Minister Daim
Zainuddin said.
    The last cut, of 0.5 pct, was effected by banks and finance
companies on April 1 following a Central Bank directive.
    The lending rate has been declining in recent months
because the Central Bank has injected more funds into the
economy, Daim told an assembly of the dominant Malay-based
United Malays National Organisation party.
    Daim, who is also the party's Treasurer General, said
Malaysia's gross domestic product growth in 1987 is likely to
exceed the one pct forecast in his 1987 budget presented last
year. He gave no details of the expected rise.
    GDP growth in 1986 was 0.5 pct.
 REUTER
