Malaysia Leaves Rates Unchanged as Expected

The Central Bank of Malaysia kept its key interest rate unchanged at 2.75% during its April 2026 policy meeting, in line with market expectations. The Board said the current policy stance remains appropriate and consistent with the outlook for continued price stability and sustainable economic growth. The annual inflation rate rose to 1.7% in March 2026 from 1.4% in February, marking the highest reading since January 2025. During the Q1 2026, headline inflation averaged 1.6%, while core inflation stood at 2.1%. The central bank noted that rising global commodity prices, driven largely by geopolitical tensions in the Middle East, are expected to increase domestic cost pressures. Meanwhile, the economy expanded 5.3% year-on-year in Q1 2026, slowing from 6.3% in the previous quarter. Finally, the Board stated that it will remain vigilant regarding global and domestic developments and continue assessing the balance of risks surrounding Malaysia’s inflation and growth trajectory.

The Central Bank of Malaysia kept its key interest rate unchanged at 2.75% during its March 2026 monetary policy meeting, in line with market expectations. The Board said the current policy stance remains appropriate and supportive of economic growth while maintaining price stability. Headline and core inflation in January 2026 stood at 1.6% and 2.3%, respectively. While global commodity prices may face heightened volatility due to recent developments, the impact on domestic inflation is expected to be contained. Meanwhile, the Malaysian economy grew 5.2% in 2025, supported by strong domestic demand, higher E&E exports, and robust tourism. Growth is expected to continue in 2026, backed by solid domestic demand, rising employment, and supportive policies. The Board noted uncertainties stemming from the Middle East conflict but will continue monitoring global developments and assessing risks to Malaysia’s growth and inflation.

The Central Bank of Malaysia held its key interest rate unchanged at 2.75% for a third consecutive meeting in January 2026, marking its first monetary policy decision of the year and in line with market expectations. The board said the decision was appropriate and supportive of economic growth amid stable prices. Headline and core inflation averaged 1.4% and 2.0%, respectively, in 2025. Looking ahead, headline inflation is expected to remain moderate in 2026 amid continued easing in global cost pressures, while core inflation is projected to stay stable and close to its long-term average. Preliminary data showed the economy grew 4.9% in 2025, slowing from 5.1% in 2024. Growth momentum is expected to continue in 2026, supported by resilient domestic demand. However, the outlook remains uncertain, particularly amid evolving global developments. The MPC said it will continue to monitor ongoing conditions and assess the balance of risks to the outlook for domestic growth and inflation.