KUALA LUMPUR: Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) decided to maintain the Overnight Policy Rate (OPR) at 2.75% at its meeting today, assessing its current monetary policy stance as supportive of sustainable economic growth and price stability.
The central bank noted that Malaysia’s growth momentum carried into the third quarter of 2026, driven by robust export performance and resilient domestic demand. This solid pace is projected to lift full-year 2026 gross domestic product (GDP) growth above 5%, with sound economic fundamentals expected to sustain expansion through 2027.
External trade will remain a vital engine, buoyed by the global technology upcycle and robust tourism receipts. Domestically, activity continues to be underpinned by stable employment conditions, active multi-year investment projects, and household consumption tailwinds from Budget 2027 measures.
However, downside risks persist, primarily stemming from prolonged Middle East conflicts and softer commodity output, while upside surprises could come from stronger-than-expected tech demand.
On the pricing front, headline and core inflation averaged 1.8% and 1.9% year-to-date, respectively. While inflationary pressures are projected to edge upward into 2027, stoked by geopolitical volatility, elevated commodity prices, and adverse weather conditions, BNM expects inflation to remain manageable amid targeted domestic policy interventions and stable demand.
The central bank reiterated that the 2.75% policy setting remains appropriate, adding that the MPC will stay vigilant in monitoring cost pressures and global vulnerabilities to ensure domestic macroeconomic resilience.