Malaysia Leaves Rates Unchanged as Expected

Bank Negara Malaysia kept its overnight policy rate (OPR) unchanged at 2.75% for an eighth consecutive meeting in November 2026, in line with market expectations. The Monetary Policy Committee (MPC) said the current policy stance remains supportive of price stability and sustainable economic growth. Headline and core inflation averaged 1.8% and 1.9%, respectively, from January to October 2026, while geopolitical tensions, elevated global commodity prices and adverse weather conditions are expected to exert upward pressure on inflation in 2027. Meanwhile, recent indicators point to continued economic strength in the third quarter of 2026, underpinned by robust export performance and sustained domestic demand. The solid momentum is expected to lift full-year growth to above 5%. The MPC reiterated that it will remain vigilant to evolving economic conditions and assess their implications for the balance of risks surrounding the domestic inflation and growth outlook.

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.

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.