The Central Bank of Malaysia left its benchmark interest rate unchanged at 3.25 percent on March 5th, 2019, as widely expected. Policymakers said that the decision was consistent with the intended policy stance, amid a slowdown in external sector. For 2019, inflation is expected to be broadly stable compared to 2018. The Committee also noted that the economy maintains its underlying fundamental strength, with steady economic growth and stable in labour market conditions. Private consumption will remain the main driver of growth, still the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and commodity related shocks. Interest Rate in Malaysia averaged 3 percent from 2004 until 2019, 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 3.50 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
2018-09-05 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%
2019-01-24 07:00 AM Interest Rate Decision 3.25% 3.25% 3.25% 3.25%
2019-03-05 07:00 AM Interest Rate Decision 3.25% 3.25% 3.25% 3.25%
2019-05-07 07:00 AM Interest Rate Decision 3.25%
2019-07-09 07:00 AM Interest Rate Decision
2019-09-12 07:00 AM Interest Rate Decision



Malaysia Leaves Monetary Policy Unchanged

The Central Bank of Malaysia left its benchmark interest rate unchanged at 3.25 percent on March 5th, 2019, as widely expected. Policymakers that the decision in consistent with the intended policy stance, amid a slowdown in external sector. For 2019, inflation is expected to be broadly stable compared to 2018. The Committee also noted that the economy maintains its underlying fundamental strength, with steady economic growth and stable in labour market conditions. Private consumption will remain the main driver of growth, still the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and commodity related shocks.

Statement by the Bank Negara Malaysia:

The Malaysian economy grew at a more moderate pace of 4.7% in 2018. Looking ahead, growth is expected to be sustained in 2019 with continued support from private sector spending. Stable labour market conditions and capacity expansion in key sectors will continue to drive household and capital spending. Support from the external sector is expected to soften, in tandem with the moderating global growth momentum. On balance, the baseline forecast is for the Malaysian economy to remain on a steady growth path. However, materialisation of downside risks from unresolved trade tensions, heightened uncertainties in the global and domestic environment, and prolonged weakness in the commodity-related sectors could further weigh on growth. 

Headline inflation in January 2019 was at -0.7%, due mainly to negative transport inflation at -7.8% arising from lower global oil prices.  Underlying inflation, as measured by core inflation[1] remained stable at 1.5% in January 2019 reflecting sustained demand conditions. In the immediate term, inflation is expected to remain low mainly due to policy measures. These include the lower price ceiling on domestic retail fuel prices until mid-2019 and the impact of the changes in consumption tax policy on headline inflation.  For 2019 as a whole, average headline inflation is expected to be broadly stable compared to 2018. The trajectory of headline inflation will continue to be dependent on global oil prices. Underlying inflation is expected to be sustained, supported by the steady expansion in economic activity and in the absence of strong demand pressures.
 
 


Central Bank of Malaysia l Chusnul Ch Manan | chusnul@tradingeconomics.com
3/5/2019 8:41:46 AM


News

Malaysia Holds Interest Rate Steady at 3.25%
The Central Bank of Malaysia kept its benchmark interest rate unchanged at 3.25 percent on January 24th, 2019, as widely expected. Policymakers that the decision in consistent with the intended policy stance and they will continue to monitor the balance of risks surrounding the inflation and domestic growth outlook. The Committee also noted that 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, still the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and commodity related shocks.
Published on 2019-01-24

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.
Published on 2018-11-08

Malaysia Leaves Monetary Policy Unchanged
The Central Bank of Malaysia kept its benchmark interest rate unchanged at 3.25 percent on September 5th, 2018, as widely expected. Policymakers said the economy maintains its underlying fundamental strength, with steady economic growth, low unemployment and a current account surplus but mentioned some immediate risks: trade tensions, prolonged weakness in the mining and agriculture sectors and some domestic policy uncertainty.
Published on 2018-09-05

Malaysia Allows More Flexibility for Exporters: Bank Negara
Bank Negara Malaysia would allow greater flexibility for exporters in managing their export proceeds, the central bank said in a statement on its website. Also, the central bank will provide more flexibility for hedging of foreign currency obligations and allow non-resident corporations to trade in ringgit denominated interest rate derivatives. All those measures, which will go into effect immediately, were taken to facilitate operational efficiencies and risk management by businesses and financial institutions.
Published on 2018-08-17



Malaysia Money Last Previous Highest Lowest Unit
Interest Rate 3.25 3.25 3.50 2.00 percent [+]
Money Supply M0 101272.97 94543.34 101272.97 1000.20 MYR Million [+]
Money Supply M1 428103.96 427538.05 428103.96 2032.50 MYR Million [+]
Interbank Rate 3.65 3.65 14.50 2.03 percent [+]
Money Supply M2 1871830.33 1866205.09 1871830.33 4122.30 MYR Million [+]
Money Supply M3 1881528.41 1875628.10 1881528.41 8313.40 MYR Million [+]
Foreign Exchange Reserves 103564.60 101400.00 155165.30 20234.20 USD Million [+]
Banks Balance Sheet 2668999.04 2648156.57 2668999.04 1022141.27 MYR Million [+]
Loans to Private Sector 1866819.69 1856379.84 1866819.69 289998.00 MYR Million [+]
Deposit Interest Rate 2.90 3.00 9.75 2.08 percent [+]
Cash Reserve Ratio 3.50 3.50 13.50 1.00 percent [+]
Central Bank Balance Sheet 450943.70 447590.93 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 March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
3.25 3.25 3.50 2.00 2004 - 2019 percent Daily




Country Last Previous
Argentina 63.87 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Feb/19
South Africa 6.75 Feb/19
Brazil 6.50 Feb/19
India 6.25 Feb/19
Indonesia 6.00 Feb/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Feb/19
Singapore 1.66 Feb/19
Australia 1.50 Mar/19
United Kingdom 0.75 Feb/19
Euro Area 0.00 Mar/19
France 0.00 Mar/19
Germany 0.00 Mar/19
Italy 0.00 Mar/19
Netherlands 0.00 Mar/19
Spain 0.00 Mar/19
Japan -0.10 Mar/19
Switzerland -0.75 Feb/19


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