- Decision
- Maintain
- Rate change
- 0 bps
- overnight policy rate
- 2.75%
The Central Bank of Malaysia’s Monetary Policy Committee (MPC) held the Overnight Policy Rate (OPR) at 2.75%, judging the stance consistent with continued price stability and sustainable economic growth. The rate has remained at that level since November 2025. Year-to-date headline and core inflation averaged 1.8% and 1.9%, respectively. Both are expected to edge higher in 2027 as geopolitical developments, elevated commodity prices and adverse weather exert upward pressure, but remain contained by domestic policy measures and stable demand conditions. The central bank expects growth above 5% in 2026, compared with around 5% projected in September, following continued strength in the third quarter underpinned by exports and sustained domestic demand. Growth is expected to remain resilient in 2027, supported by technology-related exports, tourist spending, stable labour markets and ongoing investment, although a prolonged Middle East conflict and lower commodity production pose downside risks. Globally, strong technology investment and stable labour markets are supporting growth, while higher energy costs are lifting inflation and geopolitical uncertainty continues to weigh on the outlook. The MPC will remain vigilant to cost pressures and domestic demand conditions and assess the evolving balance of risks to inflation and growth.
Rate evolution
Bank Negara Malaysia cut the Overnight Policy Rate by 25 basis points to 2.75% in July 2025 and then held it there through November 2026, pairing a pre-emptive easing with an extended pause. The July cut was framed as a step to preserve steady growth as tariff and geopolitical uncertainties threatened the external outlook, even though the domestic economy was on a strong footing and both headline and core inflation were moderate amid contained cost conditions and no excessive demand pressures. Subsequent decisions judged 2.75% appropriate and supportive as trade uncertainty initially eased somewhat and Malaysia’s economy remained resilient, with domestic demand, investment, employment and wages, alongside electrical and electronics exports and tourism, sustaining growth while inflation stayed moderate and core inflation remained close to its long-term average.
On 5 November 2026, the Monetary Policy Committee again held the policy rate at 2.75%, judging the stance consistent with continued price stability and sustainable economic growth. Strong exports and sustained domestic demand supported growth in the third quarter of 2026, and Bank Negara Malaysia expected full-year growth above 5% and resilient growth in 2027, supported by the global technology upcycle, tourist spending, stable labour market conditions, ongoing investment and Budget 2027 measures supporting private consumption. Headline and core inflation averaged 1.8% and 1.9%, respectively, year-to-date and were expected to edge higher in 2027 owing to geopolitical developments, elevated global commodity prices and adverse weather, but to remain contained amid continued domestic policy measures and stable demand conditions.