Malaysia’s central bank maintained its overnight policy rate as exports and domestic demand supported economic activity. The committee judged its stance compatible with stable prices and sustainable growth. Inflation has remained contained this year, while the bank sees geopolitical developments, commodity prices and adverse weather adding price pressure next year.
Bank Negara Malaysia, Malaysia’s central bank, left the overnight policy rate at 2.75 per cent at its November 5 meeting. Its Monetary Policy Committee judged the stance consistent with price stability and sustainable economic growth. The committee said it would watch the inflation implications of expenses and domestic demand closely.[1], [2]
Recent third-quarter indicators pointed to strong economic growth, supported by exports and sustained domestic demand. The bank expects full-year growth to exceed 5 per cent. For 2027, it sees the global technology upcycle and tourist spending supporting the external sector. Stable labour-market conditions, continuing investment and measures in the 2027 budget support its domestic-demand outlook.[1]
Headline inflation has averaged 1.8 per cent this year and core inflation 1.9 per cent. The bank expects geopolitical developments, elevated commodity prices and adverse weather to add price pressure in 2027. It anticipates higher inflation contained by domestic measures and stable demand. A prolonged Middle East conflict and lower commodity production are downside growth risks; stronger global activity, technology exports and tourism could improve the outlook. Six policy meetings are scheduled for 2027, starting on January 21.[1]
