Central Bank of Malaysia Keeps Rates Steady as Expected

2026-09-03 07:12 By Chusnul Chotimah 1 min. read

The Central Bank of Malaysia left its key interest rate unchanged at 2.75% for the seventh straight policy meeting in September 2026, as expected.

The Monetary Policy Committee said the current policy stance remains appropriate for maintaining price stability and supporting economic growth.

The central bank said GDP grew robustly by 5.7% in H1 of 2026, driven by stronger-than-expected export performance amid sustained domestic demand, despite uncertainty in global conditions.

The strong growth is expected to bring 2026 growth to around 5%, while the economy’s sound fundamentals are expected to keep growth resilient in 2027.

Headline and core inflation averaged 1.8% and 2%, respectively, in the first seven months of 2026, with price pressures expected to remain manageable despite higher global commodity prices linked to tensions in the Middle East.

The MPC will continue to monitor the latest developments and assess the balance of risks to the outlook for inflation and domestic growth.



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Central Bank of Malaysia Keeps Rates Steady as Expected
The Central Bank of Malaysia left its key interest rate unchanged at 2.75% for the seventh straight policy meeting in September 2026, as expected. The Monetary Policy Committee said the current policy stance remains appropriate for maintaining price stability and supporting economic growth. The central bank said GDP grew robustly by 5.7% in H1 of 2026, driven by stronger-than-expected export performance amid sustained domestic demand, despite uncertainty in global conditions. The strong growth is expected to bring 2026 growth to around 5%, while the economy’s sound fundamentals are expected to keep growth resilient in 2027. Headline and core inflation averaged 1.8% and 2%, respectively, in the first seven months of 2026, with price pressures expected to remain manageable despite higher global commodity prices linked to tensions in the Middle East. The MPC will continue to monitor the latest developments and assess the balance of risks to the outlook for inflation and domestic growth.
2026-09-03
Malaysia Holds Rates Steady as Expected
The Central Bank of Malaysia kept its key interest rate unchanged at 2.75% at its July 2026 policy meeting, in line with market expectations. The Monetary Policy Committee said the current policy stance remains well suited to preserving price stability while supporting steady economic growth. Additionally, the central bank said Malaysia's economic activity remained resilient in the second quarter, backed by solid domestic demand and stronger-than-expected exports, while keeping its 2026 growth forecast at 4% to 5%. Headline and core inflation averaged 1.7% and 2.1%, respectively, in the first five months of 2026, with price pressures expected to stay manageable despite higher global commodity prices linked to tensions in the Middle East. Finally, the MPC said it will continue to closely monitor economic developments and evaluate risks to the domestic inflation and growth outlook.
2026-07-09
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.
2026-05-07