Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 2.75% after the Monetary Policy Committee (MPC) Meeting held today.
According to BNM, the decision was made because the current monetary policy is still appropriate to ensure price stability while supporting the country's sustainable economic growth.
Globally, economic growth is expected to remain resilient, supported by the development of the technology sector, the recovery of the supply chain and increasingly stable commodity prices.
However, the conflict in the Middle East, tighter global financial conditions and financial market volatility remain risks to the world economy.
For Malaysia, economic performance in the second quarter of this year is seen to remain strong due to stable domestic demand and better-than-expected export performance. Demand for electrical and electronic (E&E) products, the implementation of development projects and tourism activities are also expected to continue to support economic growth.
BNM maintained its 2026 economic growth forecast for Malaysia in the range of 4% to 5%, with the country's strong economic fundamentals expected to help weather any external risks.
In terms of inflation, the headline inflation rate for the first five months of the year averaged 1.7%, while core inflation stood at 2.1%, in line with BNM's expectations.
Although the conflict in the Middle East has caused global commodity prices to rise, BNM expects the impact on Malaysian inflation to remain contained thanks to government policy measures and stable domestic demand.
BNM also stressed that it will continue to monitor economic and inflation developments before making any adjustments to the OPR rate at the next meeting.
