Key facts
- Bank Negara Malaysia (BNM) maintained its Overnight Policy Rate (OPR) at 2.75%.
- The decision was made by the Monetary Policy Committee (MPC) at its recent meeting.
- BNM forecasts resilient economic growth for Malaysia in 2026, driven by domestic demand.
- Inflation is expected to remain moderate, supported by easing global cost conditions and modest commodity prices.
- The central bank is monitoring global uncertainties, including potential tariff increases and geopolitical tensions.
Bank Negara Malaysia (BNM) has decided to maintain its benchmark interest rate at 2.75%, citing a resilient economic growth outlook and moderate inflation expectations for 2026. The central bank's Monetary Policy Committee (MPC) assessed that the current monetary policy stance remains supportive of the economy.
Governor Datuk Seri Abdul Rasheed Ghaffour explained that Malaysia's economic growth demonstrated resilience last year and is expected to continue into 2026, primarily driven by robust domestic demand. Factors supporting household spending include stable employment, wage growth, and government policies. Investment activity is anticipated to be bolstered by ongoing multi-year infrastructure projects, national master plans, and the realization of approved investments.
On the external front, BNM anticipates that Malaysia will benefit from sustained strength in electrical and electronics (E&E) exports and increased tourist spending. The central bank also noted that global commodity prices are forecast to remain modest, which will help contain domestic cost pressures and keep both headline and core inflation moderate.
Despite the positive outlook, the MPC acknowledged persistent global uncertainties. These include the potential for higher tariffs, escalating geopolitical tensions, slower global trade, and heightened volatility in financial markets. BNM stated that its monetary policy decisions are made on a meeting-by-meeting basis, adapting to evolving global and domestic developments rather than adhering to a predetermined path.