Bank Negara keeps overnight policy rate at 2.75%
The central bank expects 2026 economic growth to exceed 5%, with headline and core inflation remaining contained in 2027.
Bank Negara Malaysia (BNM) left its overnight policy rate unchanged at 2.75% on Nov 5, concluding its six scheduled reviews for the year. The central bank said the setting remained appropriate for its growth and inflation outlook.
The decision matched the forecasts of 17 of 23 economists surveyed by Bloomberg. The other six had expected an increase of 25 basis points.
BNM expects economic growth to exceed 5% in 2026 and remain resilient in 2027. It identified external trade as a continuing source of growth, with investment activity and stable conditions in the labour market supporting domestic demand.
The economy grew 5.3% year-on-year in the third quarter, while inflation stayed below 2%. Electronics exports have benefited from demand linked to artificial intelligence, while subsidies and price controls have helped restrain inflation.
For 2027, BNM expects both core and headline inflation to stay contained, supported by domestic policy measures and stable demand. It said it was watching costs and domestic demand, with geopolitical developments, high global commodity prices and adverse weather among the factors shaping the inflation outlook.
