KUALA LUMPUR: Malaysia’s strong economic growth and moderate inflation provide a stable environment for Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 2.75%, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said.
He said the government took note of BNM’s decision today to keep the OPR unchanged, saying that monetary policy decisions remained the responsibility of the central bank.
“From the OPR perspective, that is certainly the responsibility of Bank Negara. In terms of monetary policy, that is a consideration that needs to be made by Bank Negara.
“But at the government level, we see that the strong growth taking place in the country is helping the economy to continue expanding,” he told reporters at the Oil and Gas Asia (OGA) 2026 in Kuala Lumpur today.
BNM’s Monetary Policy Committee maintained the OPR at 2.75%, keeping the benchmark rate unchanged at its latest meeting.
The central bank last cut the OPR by 25 basis points to 2.75% in July 2025, from 3%.
The decision comes as Malaysia’s economy continues to show strong momentum, with gross domestic product expanding 6% year-on-year in the second quarter of 2026, following 5.4% growth in the first quarter.
This brought GDP growth for the first half of the year to 5.7%.
Akmal said the government was looking beyond the immediate growth figures and assessing how the expansion could be sustained over the medium and long term.
“From the perspective of the Ministry of Economy, we are also looking at how this economic growth can be sustained, particularly when we are targeting growth of around 4% to 5% for 2026.
“But given the current situation, we are confident that it will be around 5%,” he said.
He identified the semiconductor and electrical and electronics (E&E) sectors as among the major contributors to recent economic growth, adding that the sectors are expected to continue supporting expansion alongside manufacturing.
Meanwhile, inflation remained relatively contained, with Malaysia’s consumer price index rising 1.8% year-on-year in July, compared with 1.9% in June.
Akmal said the combination of economic growth and moderate inflation provided stability from the monetary policy perspective.
He added that the government would continue using fiscal measures to support households and keep cost-of-living pressures at a moderate level.
“The growth that we are enjoying also needs to be assessed in terms of its impact on society generally and how it enables the government to continue providing support and room for the people to deal with the cost of living,” he said.
The government’s next major fiscal policy framework will be outlined in Budget 2027, which is scheduled to be tabled in October.
BNM, meanwhile, has maintained that its current monetary policy stance remains supportive of sustainable economic growth while preserving price stability.
The central bank has also flagged external risks, including geopolitical developments, higher global energy prices and their potential impact on inflation and domestic economic activity.
