Malaysia Holds Rates Steady as Expected

2025-09-04 07:15 By Czyrill Jean Coloma 1 min. read

The Central Bank of Malaysia kept its key interest rate unchanged at 2.75% during its August 2025 policy meeting, aligning with market expectations.

The Board reiterated that the decision was appropriate and supportive of the economy amid price stability.

Headline inflation averaged 1.4% over the first seven months of the year and is projected to remain moderate through 2025 and 2026, supported by subdued global cost pressures.

Core inflation, which averaged 1.9% during the same period, is expected to stay stable and near its historical average.

This suggests a steady pace of economic activity without signs of significant demand-driven price pressures.

Meanwhile, Malaysia’s economy expanded by 4.4% in the first half of 2025, with full-year growth projected to grow within the 4.0% to 4.8% range.

The outlook is underpinned by resilient consumer spending and strong investment momentum.

Looking ahead to 2026, domestic demand is anticipated to remain robust and the main driver of growth.



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