Bank Negara Malaysia’s Monetary Policy Committee kept the Overnight Policy Rate at 2.75 percent on 7 May 2026, judging that this level remains consistent with sustainable growth and contained inflation amid heightened uncertainty from the Middle East conflict, which is pushing up global commodity prices and straining supply chains. The OPR has been steady since a 25 bp reduction in July 2025. Headline and core inflation averaged 1.6 percent and 2.1 percent respectively in the first quarter, and while higher energy and commodity costs are expected to lift prices modestly, domestic policy measures and stable demand should keep overall inflation pressures in check. Recent indicators show Q1 growth continuing on solid domestic demand and robust electrical and electronics exports, with employment and wage gains, multi-year investment projects and tourism underpinning activity; risks stem from a prolonged conflict and lower commodity output, while de-escalation and stronger tech demand could provide upside. Globally, resilient expansion is being tempered by the conflict-induced surge in energy prices, supply disruptions, tighter financial conditions and stretched asset valuations. The committee said it will remain vigilant and stands ready to reassess the balance of risks to inflation and growth.
Bank Negara Malaysia 2026-05-07
Bank Negara Malaysia keeps the Overnight Policy Rate unchanged at 2.75 percent
Bank Negara Malaysia’s Monetary Policy Committee left the Overnight Policy Rate unchanged at 2.75 % on 7 May, reiterating that the current stance supports sustainable growth and contained inflation even as Middle East conflict raises commodity costs; headline/core inflation averaged 1.6 %/2.1 % in Q1 and the committee pledged continued vigilance.