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BANK Negara Malaysia kept the overnight policy rate (OPR) unchanged at 2.75 per cent - the level set in July 2025.
In its third Monetary Policy Committee (MPC) meeting for the year, the committee considered the monetary policy stance to be appropriate and consistent with the outlook of continued price stability and sustainable economic growth.
"The MPC will remain vigilant to ongoing developments and assess the balance of risks surrounding the outlook for domestic inflation and growth," it said in a statement.
Bank Negara said global growth remained resilient in the first quarter of 2026, supported mainly by sustained domestic demand and continued global tech expansion.
However, it cautioned that sharp increases in energy and commodity prices, as well as supply chain disruptions from the Middle East conflict, are beginning to weigh on the global growth momentum.
The central bank said the risks to global growth remain elevated, stemming from the uncertainties surrounding the length and severity of the conflict, tighter global financial conditions and concerns over valuations in financial markets.
Meanwhile, BNM said the upside potential includes de-escalation of the conflict, leading to improved supply chain conditions, stronger tech spending and pro-growth policy measures in key economies.
“For Malaysia, the latest indicators point towards continued growth momentum in the first quarter, driven by sustained domestic demand and strong export performance.
“Moving forward, uncertainties surrounding the duration and severity of the Middle East conflict will affect the outlook of domestic growth and inflation.
“Nevertheless, Malaysia’s strong fundamentals will continue to underpin the economy’s resilience.”
The MPC acknowledged the uncertainties from the ongoing conflict in the Middle East.
The impact on the global and Malaysian economy will depend on how these developments evolve.
At the current OPR level, the MPC considers the monetary policy stance to be appropriate and consistent with the outlook of continued price stability and sustainable economic growth.
“The MPC will remain vigilant to ongoing developments and assess the balance of risks surrounding the outlook for domestic inflation and growth,” it added. – May 7, 2026
