Kuala lumpur: Bank Negara Malaysia (BNM) views the country's 2026 growth outlook as resilient and expects inflation to remain moderate. In an exclusive interview with Bernama today, the central bank's governor Datuk Seri Abdul Rasheed Ghaffour explained that the decision to keep the benchmark rate unchanged at 2.75 per cent at the Monetary Policy Committee (MPC) meeting last week reflects BNM's assessment of the country's growth and inflation outlook.

According to BERNAMA News Agency, Abdul Rasheed emphasized that last year's growth demonstrated resiliency, which BNM expects to continue into 2026. He noted that the stable price environment is supported by easing global cost conditions, with global commodity prices expected to remain modest, helping to contain cost pressures.

Abdul Rasheed highlighted that despite persistent global uncertainties, the MPC is closely monitoring external developments that may impact Malaysia's economic outlook. He stressed that BNM's monetary policy decisions are made on a meeting-by-meeting basis rather than following a predetermined rate path.

He further explained that assessments on growth and inflation outlooks could change based on both global and domestic developments. The current Overnight Policy Rate (OPR) level of 2.75 per cent is deemed appropriate and supportive of the economy.

Abdul Rasheed also discussed the role and impact of monetary policy decisions on economic activity. He elaborated that reducing the OPR during economic slowdowns can stimulate the economy by making loan repayments cheaper for households and businesses, encouraging spending and investment.

Conversely, when inflation risks are high, the central bank acts to control price pressures. While higher rates may increase loan costs, it is necessary to prevent unanchored inflation, ensuring purchasing power is protected over time.