Malaysia Central Bank Holds Rate As Expected

(RTTNews) - Malaysia's central bank maintained its key interest rate for the sixth straight meeting on Thursday, as geopolitical tensions are forecast to have limited impact on inflation.

The Monetary Policy Committee of Bank Negara Malaysia decided to maintain the Overnight Policy Rate at 2.75 percent.

The previous change in the policy was a quarter-point reduction in July 2025, which was the first cut in five years.

"At the current OPR level, the MPC considers the monetary policy stance to be appropriate and consistent with the outlook of continued price stability and sustainable economic growth," the bank said.

Policymakers observed that headline inflation averaged 1.7 percent in the first five months of the year. Although developments surrounding the Middle East conflict are expected to exert upward pressure on inflation, the bank said the impact will remain contained.

The committee said strong fundamentals will underpin the economy's resilience against external shocks. The bank projected the economy to grow firmly in the range of 4 percent to 5 percent this year.