PETALING JAYA: Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 2.75% at its Monetary Policy Committee (MPC) meeting today, citing resilient economic growth and a contained inflation outlook.
In its Monetary Policy Statement, BNM said recent indicators pointed to continued strength in economic growth in Q3’26, underpinned by strong export performance and sustained domestic demand.
The growth momentum is expected to bring Malaysia’s economic growth to above 5% in 2026, with sound economic fundamentals expected to sustain resilience in 2027.
BNM said the external sector would remain a major growth driver, supported by the global technology upcycle and firm tourist spending.
Stable labour market conditions and ongoing investment activity are also expected to support domestic demand, while measures under Budget 2027 will provide further support to private consumption.
However, the growth outlook remains subject to downside risks, including prolonged conflict in the Middle East and lower commodity production.
Headline and core inflation averaged 1.8% and 1.9%, respectively, year-to-date.
BNM expects both measures to edge higher in 2027 amid geopolitical developments, elevated global commodity prices and adverse weather conditions, although inflation is expected to remain contained.
The central bank said it would remain vigilant to cost pressures and domestic demand conditions, given their implications for the inflation outlook.
“At the current OPR level, the MPC considers the monetary policy stance to be consistent with the outlook of continued price stability and sustainable economic growth,” it said.
