Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) kept the Overnight Policy Rate (OPR) unchanged at 2.75%, citing a balanced outlook for growth and inflation amid rising global risks.
The central bank highlighted that Malaysia enters 2026 from a position of strength, following 5.2% GDP growth last year, underpinned by robust domestic demand, strong electrical and electronics exports, and healthy inbound tourism.
“Employment gains, wage growth and ongoing investment projects are expected to sustain household spending and investment activity this year,” the central bank said in a statement.
However, the MPC noted heightened downside risks from the recent conflict in the Middle East, potential volatility in global markets and trade uncertainties.
“Headline and core inflation remain moderate at 1.6% and 2.3%, respectively, with expectations to stay stable throughout 2026.
“Nevertheless, the Malaysian economy is well-positioned to weather external shocks,” the MPC said, emphasising that the current OPR stance remains appropriate to support growth while maintaining price stability.
BNM emphasised that the committee will continue to monitor global and domestic developments closely.
