Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 2.75%, as the central bank judged the current monetary policy stance to be consistent with continued price stability and sustainable economic growth.
The Monetary Policy Committee said Malaysia’s economy expanded by 5.7% in the first half of 2026, supported by stronger-than-expected exports and sustained domestic demand. Full-year growth is expected to come in at around 5%.
Growth is expected to remain supported by demand for electrical and electronics (E&E) goods, stronger tech-related non-E&E exports, tourism spending, stable labour market conditions and ongoing investment activity.
On inflation, headline and core inflation averaged 1.8% and 2% respectively in the first seven months of the year.
BNM said the pass-through of higher costs to consumer prices has remained contained, although elevated global commodity prices continue to pose upside pressure.
Nevertheless, the central bank said it will remain vigilant to developments affecting domestic inflation and growth, including geopolitical tensions and broader global financial conditions.
