Bank Negara Malaysia Keeps Overnight Policy Rate at 2.75%

The Monetary Policy Committee of Bank Negara Malaysia maintained the Overnight Policy Rate at 2.75% on 9 July 2026, saying the current stance is appropriate and consistent with continued price stability and sustainable economic growth as Malaysia’s economy shows resilient second-quarter momentum while inflation remains broadly within expectations. For Malaysia, the central bank said growth was being driven by sustained domestic demand and stronger-than-expected exports, with employment, wage growth and policy measures supporting household spending, and it expects 2026 growth to be firmly within the 4%-5% forecast range, helped by multi-year investment projects, high realisation of approved investments, robust electrical and electronics demand, a rebound in non-E&E exports and sustained tourist spending. Headline and core inflation averaged 1.7% and 2.1% in the first five months of the year, and while elevated global commodity prices linked to developments surrounding the Middle East conflict are expected to put upward pressure on prices, the impact on 2026 inflation is expected to remain contained by domestic policy measures and stable demand conditions. Globally, Bank Negara Malaysia said growth remains broadly resilient, supported by strong tech expansion and improving supply conditions and key commodity prices, though risks remain from the Middle East conflict, tighter global financial conditions and valuation concerns in financial markets. The central bank said it will re