Kuala lumpur: Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 2.75 per cent during its meeting today. The central bank stated that this rate level is considered appropriate and supports the economy amid price stability.
According to BERNAMA News Agency, the MPC emphasized its commitment to monitoring ongoing developments and assessing risks related to domestic growth and inflation. BNM highlighted that global growth in 2025 would be supported by sustained domestic demand, moderating inflation, robust tech investments, and supportive fiscal and monetary policies. However, uncertainty looms over the global economy due to the conflict in the Middle East, which could impact global economic stability depending on its duration and severity.
BNM also expressed concerns over potential higher tariffs and elevated financial market valuations. Conversely, the bank noted the upside potential driven by stronger tech spending, a milder tariff impact, and pro-growth policy measures in key economies. The Malaysian economy experienced a 5.2 per cent growth in 2025, fueled by strong domestic demand, increased electrical and electronics exports, and robust tourism.
The central bank expects this growth momentum to continue in 2026, supported by resilient domestic demand, employment, wage growth, and policy measures enhancing household spending. Investment activities are anticipated to be driven by multi-year projects in both private and public sectors, new public projects, and high realisation of approved investments.
BNM projected that the external sector would benefit from continued strength in electrical and electronics exports and higher tourist spending. However, uncertainties surrounding global developments, including the Middle East conflict, pose downside risks such as slower global trade and lower-than-expected commodity production. Upside potential could arise from improved global growth prospects, increased demand for electronic goods, and stronger tourism activity.
The central bank reported that headline and core inflation stood at 1.6 per cent and 2.3 per cent, respectively, in January 2026. It expects overall headline inflation to remain moderate throughout the year, with domestic inflation impacts contained despite global commodity price volatility.
BNM also anticipates core inflation will remain stable, reflecting continued economic expansion and the absence of excessive demand pressures. The bank acknowledged the uncertainties posed by the Middle East conflict but assured that Malaysia is facing these challenges from a position of strength, supported by robust domestic growth, moderate inflation, a sound financial sector, and a resilient external position.