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.
Bank Negara Malaysia Holds Overnight Policy Rate at 2.75%
The Central Bank of Malaysia’s Monetary Policy Committee held the Overnight Policy Rate at 2.75%, judging it consistent with price stability and sustainable growth. The bank expects growth above 5% in 2026, up from around 5% projected in September, while inflation is expected to edge higher in 2027 but remain contained.