Bank Negara Malaysia's Monetary Policy Committee in its first meeting of the year decided to maintain the Overnight Policy Rate at 2.75 percent.
Bank Negara Malaysia announced that at the current OPR level, the monetary policy stance remains appropriate and continues to support economic growth in a stable price environment.
Malaysia's economic growth for 2025 is expected to be at the upper end of the projected range of four to 4.8 percent, with the growth momentum expected to continue in 2026. This outlook is supported by domestic demand that remains resilient.
Household spending is expected to continue to be supported by stable employment conditions, wage growth and the implementation of income-related policy measures. Investment activity is driven by the progress of multi-year projects in the private and public sectors, the implementation of small-scale public projects, the continuation of approved investments and the continued implementation of the national master plan.
The external sector is expected to benefit from continued strong exports of electricity and electronics, as well as increased tourist spending.
Bank Negara Malaysia also announced that headline inflation and core inflation averaged 1.4 percent and two percent respectively last year. For 2026, headline inflation is expected to remain moderate, supported by continued easing global cost conditions.
Global commodity prices are expected to remain moderate and contribute to contained domestic costs. At the same time, core inflation in 2026 is expected to be stable and close to the long-term average, reflecting continued economic expansion without excess demand pressures.
The MPC will continue to monitor current developments and assess the balance of risks to the outlook for growth and domestic inflation.
The last time Bank Negara Malaysia changed the OPR rate was in July, when the rate was lowered by 25 basis points from three percent.
The next Bank Negara Malaysia Monetary Policy Committee meeting is scheduled to be held on 5 March 2026.
