The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) on Thursday decided to maintain the Overnight Policy Rate (OPR) at 2.75%, in line with the current conditions that support economic growth and price stability.
Globally, economic growth continues to be supported by stable consumer spending and still brisk trade activities.
The resolution of several key trade negotiations has also reduced market uncertainty, while looser monetary policies and fiscal stimulus in major countries have provided additional impetus.
However, risks to the global outlook remain, including new tariffs that are set to take effect and prolonged geopolitical tensions, which could potentially weigh on financial markets and commodity prices.
For Malaysia, the economy grew 4.4% in the first half of 2025 and remains on track to achieve growth of between 4% and 4.8% this year.
Growth is expected to remain positive in 2026, driven by strong domestic demand, increased investment in the public and private sectors, and the continued implementation of strategic initiatives under the national master plan and the 13th Malaysia Plan (13MP).
On the price front, inflation remained contained with an average of 1.4% for headline inflation and 1.9% for core inflation in the first seven months of this year.
BNM expects inflation rates to remain moderate throughout 2025 and 2026, supported by more stable global costs and easing commodity prices.
By maintaining the OPR at its current level, the MPC reiterated that the stance of monetary policy remains appropriate to support economic growth while ensuring price stability. The central bank will continue to monitor current developments and assess the balance of risks to the outlook for growth and inflation going forward.
