The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 2.75% in its latest meeting today.
BNM explained that the current rate remains appropriate and supportive of economic growth amid stable inflation. The central bank also stressed that it will continue to monitor global and domestic developments, including the balance of risks to the growth outlook and domestic inflation.
According to BNM, global growth remains moderate, supported by a strong job market, declining inflation and looser monetary and fiscal policies. However, factors such as rising trade tariffs and geopolitical tensions are expected to continue to weigh on global growth momentum.
BNM also warned against the continued high valuation of financial markets, while expecting global growth to strengthen if tariff pressures ease and pro-growth policies continue in advanced economies.
For Malaysia, the latest data showed better-than-expected third-quarter growth, driven by strong domestic demand, stable E&E exports, and a recovery in commodity production.
BNM expects domestic demand to remain the main driver of the economy until 2026, supported by healthy employment and wage growth as well as various income-related policy measures.
In addition, investment activity is expected to increase as a result of the progress of long-term public and private sector projects, the implementation of approved investments, and strategic initiatives under the national master plan and the 13th Malaysia Plan (13MP).
Measures in Budget 2026 are also expected to provide additional support to the country's economic growth.
