Malaysia Interest Rate2021 Data | 2022 Forecast | 2004-2020 Historical | Calendar

Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on November 3rd 2021, as expected, citing that risks to the growth outlook remained tilted to the downside due to external and domestic factors. These include weaker-than-expected global growth, worsening supply chain disruptions, and the possibility of reimposition of containment measures due to new COVID-19 variants of concern. The monetary policy committee said that despite slowing down in the third quarter, when infections and hospitalizations peaked, economic activity was seen improving since July, in line with the relaxation of social distancing measures. On the price front, the central bank added that headline inflation has averaged 2.3% this year and was set to range between 2% and 3% until the end of the year, in line with previous forecasts, and is projected to remain moderate in 2022.

Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on September 9th 2021, as expected, stating that the risks to the growth outlook remained tilted to the downside due to external and domestic factors. The monetary policy committee noted the nation-wide lockdowns restrictions dampened growth momentum, while the recent gradual relaxations to allow more sectors to operate coupled with continued policy support have mitigated the impact of the pandemic. Looking ahead, policymakers said that expanding global demand conditions, the reopening of economic activity and the vaccination drive will support growth. On the price front, the central bank added that headline inflation has averaged 2.3% this year and was set to range between 2% and 3% until the end of the year, although the outlook remained dependent on global commodity prices.

Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on July 8th 2021, in line with expectations, as policymakers warned the balance of risks to the growth outlook remained on the downside. The monetary policy committee noted better-than-expected levels of economic activity during the first quarter, including April, but said the re-imposition of nation-wide lockdowns to curb the spread of the coronavirus will dampen the growth momentum. The central bank added that favorable external demand conditions, the digital economy, and the allowances for firms to continue operating, albeit at a reduced capacity, will continue to support growth. Finally, policymakers said the spike in headline inflation was temporary and mainly driven by baseline effects. Additionally, inflation was projected to reach the lower bound of the forecast range in 2021, while core inflation was expected to average between 0.5%-1.5% amid spare capacity in the economy.