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BANK Negara Malaysia is keeping the OPR parked at 2.75%, pointing to steady economic growth and well-behaved inflation.
Central bank chief Datuk Seri Abdul Rasheed Ghaffour told reporters that headline and core inflation have held firm at 1.8% and 2% respectively, weathering cost pressures over the past year.
"This keeps inflation right inside our 1.5% to 2.5% forecast range, with growth pushing ahead on a positive curve without erratic swings," Abdul Rasheed said.
Looking down the road, he’s betting that the AI boom and a broader tech sector upcycle will keep export momentum humming through next year and all the way into 2028.
Malaysia's solid second-quarter numbers were largely driven by electrical and electronics (E&E) shipments, steady domestic spending, and strong tourism numbers.
Overall growth for the year is tracking right around 5%, with those same engines expected to carry the momentum into 2027.
Even so, the central bank isn't flying blind. Policymakers are keeping a nervous eye on lingering Middle East conflicts and potential supply shocks.
Fortunately, Abdul Rasheed noted that government buffers have helped shield the domestic market, while local businesses have done their part by absorbing some of the pain, diversifying supply chains, and tweaking inventory strategies.
As for where interest rates go next, Abdul Rasheed stressed that the playbook depends entirely on what's fueling the price increases.
"If it's purely a cost squeeze, tweaking monetary policy isn't going to fix it—we have to use other tools," he said.
“If the heat is coming from domestic demand, that's a different story.
We'll keep a close watch and pull the right levers when needed." – September 6, 2026
