The Monetary Policy Committee of Bank Negara Malaysia held the Overnight Policy Rate (OPR) at 2.75%, judging the stance consistent with continued price stability and sustainable economic growth. The OPR has remained at 2.75% since September 2025. Malaysia’s economy expanded 5.7% in the first half of 2026, driven by stronger-than-expected exports and sustained domestic demand, and growth is expected at around 5% for the full year. Headline and core inflation averaged 1.8% and 2.0%, respectively, in the first seven months, as domestic policy measures and stable demand contained the pass-through from elevated costs. Global growth remained resilient on strong technology expansion, improving supply conditions and stable labour markets, although the Middle East conflict, inflationary pressures and tighter financial conditions pose downside risks. The committee will remain vigilant to cost and domestic demand pressures and assess risks to the inflation and growth outlook.