The Central Bank of Malaysia kept its benchmark interest rate unchanged at 3.25 percent on November 8th, 2018, as widely expected. Policymakers said the economy maintains its underlying fundamental strength, with steady economic growth, low unemployment and a current account surplus. Private consumption will remain the main driver of growth, but the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and prolonged weakness in the mining and agriculture sectors. Interest Rate in Malaysia averaged 2.99 percent from 2004 until 2018, reaching an all time high of 3.50 percent in April of 2006 and a record low of 2 percent in February of 2009.

Interest Rate in Malaysia is expected to be 3.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Malaysia to stand at 3.50 in 12 months time. In the long-term, the Malaysia Interest Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.

Malaysia Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-07-11 07:00 AM Interest Rate Decision 3.25% 3.25% 3.25% 3.25%
2018-09-05 07:00 AM Interest Rate Decision 3.25% 3.25% 3.25% 3.25%
2018-11-08 07:00 AM Interest Rate Decision 3.25% 3.25% 3.25% 3.25%



Malaysia Keeps Monetary Policy Steady


The Central Bank of Malaysia kept its benchmark interest rate unchanged at 3.25 percent on November 8th, 2018, as widely expected. Policymakers said the economy maintains its underlying fundamental strength, with steady economic growth, low unemployment and a current account surplus. Private consumption will remain the main driver of growth, but the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and prolonged weakness in the mining and agriculture sectors.

Statement by the Bank Negara Malaysia:

The global economic expansion continues, although with signs of moderating momentum. In the advanced economies, growth will continue to be mainly driven by positive labour market conditions and policy support. Growth in Asia will be supported by domestic activity amid weaker external demand. Risks to the global growth outlook remain tilted to the downside, with trade tensions continuing to be a key source of downside risk. Continued volatility in international financial markets and monetary policy normalisation in some advanced economies could lead to further capital outflows and financial market adjustments in emerging economies.

For the Malaysian economy, latest indicators point towards continued expansion in private sector activity. Private consumption will remain the main driver of growth, supported by conducive labour market conditions. Investment activity is projected to be sustained by continued capacity expansion in key sectors, driven by positive demand and efforts to enhance automation. Public sector spending, however, is likely to weigh on growth, amid continued reprioritisation of expenditure by the Government. The recent announcements by the Government have provided more clarity on fiscal and economic development policies. On the external front, exports are projected to provide an additional lift to growth, albeit to a lesser extent, due to moderating global growth momentum. The domestic economy continues to face downside risks stemming from any further escalation in trade tensions and prolonged weakness in the mining and agriculture sectors. Nevertheless, on balance, the Malaysian economy is expected to remain on a steady growth path in 2018 and 2019. 

The annual average headline inflation will be low in 2018. Moving into 2019, headline inflation is projected to increase primarily due to higher projected global oil prices and the floating of domestic fuel prices. While the impact of the consumption tax policy will contribute to higher headline inflation in 2019, it will lapse towards the end of 2019. Underlying inflation is expected to remain contained in the absence of strong demand pressures.

In line with regional economies, the domestic financial markets continue to experience non-resident portfolio outflows due to global developments. Nevertheless, the financial markets remain orderly with domestic monetary and financial conditions supportive of economic growth. The financial sector is sound, with financial institutions operating with strong capital and liquidity buffers. Importantly, the domestic economy maintains its underlying fundamental strength, with steady economic growth, low unemployment and surplus in the current account of the balance of payments. Bank Negara Malaysia’s monetary operations will continue to ensure sufficient liquidity to support the orderly functioning of money and foreign exchange markets and intermediation activity.
At the current level of the OPR, the degree of monetary accommodativeness is consistent with the intended policy stance. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.


Central Bank of Malaysia l Chusnul Ch Manan | chusnul@tradingeconomics.com
11/8/2018 7:36:40 AM



Malaysia Money Last Previous Highest Lowest Unit
Interest Rate 3.25 3.25 3.50 2.00 percent [+]
Interbank Rate 3.65 3.65 14.50 2.03 percent [+]
Money Supply M0 93837.40 94567.22 97729.04 1000.20 MYR Million [+]
Money Supply M1 414426.80 410934.68 422779.83 2032.50 MYR Million [+]
Money Supply M2 1795131.31 1784928.82 1795131.31 4122.30 MYR Million [+]
Money Supply M3 1804889.01 1794140.89 1804889.01 8313.40 MYR Million [+]
Foreign Exchange Reserves 105271.49 104400.00 155165.30 20234.20 USD Million [+]
Banks Balance Sheet 2607539.61 2602183.58 2607539.61 1022141.27 MYR Million [+]
Loans to Private Sector 1824311.40 1827702.49 1827702.49 289998.00 MYR Million [+]
Deposit Interest Rate 3.00 3.10 9.75 2.08 percent [+]
Cash Reserve Ratio 3.50 3.50 13.50 1.00 percent [+]
Central Bank Balance Sheet 450151.41 446396.00 506381.40 2220.90 MYR Million [+]


Malaysia Interest Rate

In Malaysia, the interest rate decisions are taken by The Central Bank of Malaysia (Bank Negara Malaysia). The official interest rate is the Overnight Policy Rate. This page provides - Malaysia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Malaysia Interest Rate - actual data, historical chart and calendar of releases - was last updated on November of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
3.25 3.25 3.50 2.00 2004 - 2018 percent Daily




Country Last
Argentina 62.12 Nov/18
Turkey 24.00 Oct/18
Mexico 8.00 Nov/18
Russia 7.50 Oct/18
Brazil 6.50 Oct/18
India 6.50 Oct/18
South Africa 6.50 Oct/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Oct/18
Australia 1.50 Nov/18
South Korea 1.50 Oct/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Oct/18
France 0.00 Oct/18
Germany 0.00 Oct/18
Italy 0.00 Oct/18
Netherlands 0.00 Oct/18
Spain 0.00 Oct/18
Japan -0.10 Oct/18
Switzerland -0.75 Oct/18


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