Malaysia Interest Rate2004-2021 Data | 2022-2023 Forecast | Calendar | Historical

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.

Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on May 6th 2021, amid resurging coronavirus infections and in line with expectations. The monetary policy committee said the latest indicators showed continued improvements in economic activity in the first quarter and into April. Recently, movement restrictions were reimposed at the local level with near-term effects in the economy but growth projections are seen improving, driven by stronger global demand and private sector expenditure, policymakers said. The bank added that growth will be supported by existing and new manufacturing plants, mostly in the electrical and electronics sector, as well as oil and gas. The central bank projects headline inflation to spike in Q2, in particular, due to baseline effects, and average higher between 2.5 percent and 4.0 percent through the rest of the year mainly on higher oil prices.

Bank Negara Malaysia held its key overnight policy rate unchanged at 1.75% on March 4th 2021, as widely expected. The central bank said the latest indicators point to improvements in external demand and continued consumer spending. While the re-imposition of containment measures will affect growth in Q1, the impact is expected to be less severe than that experienced in Q2 of 2020. Going forward, growth is projected to improve from the second quarter onwards, driven by the recovery in global demand, increased public and private sector expenditure amid continued support from policy measures and more targeted containment measures. The inflation is projected to average higher, primarily due to rising global oil prices. In terms of trajectory, headline inflation is anticipated to temporarily spike in the second quarter of 2021 due to the lower base from the low domestic retail fuel prices in the corresponding quarter of 2020, before moderating thereafter.