Malaysia Central Bank Holds Rate At 2.75%

(RTTNews) - Malaysia's central bank left its benchmark rate unchanged on Thursday after easing the policy in July.

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

The bank had reduced the rate by a quarter-point in July, which was the first reduction in five years.

"At the current OPR level, the MPC considers the monetary policy stance to be appropriate and supportive of the economy amid price stability," the bank said.

Policymakers expect headline inflation for 2025 and 2026 to remain moderate amid contained global cost conditions. Core inflation is also forecast to remain stable and close to the long-term average.

The committee observed that the economy remains on track to expand between 4 percent and 4.8 percent this year. Moving forward into 2026, the bank expects resilient domestic demand to support growth.

The bank cited slower global trade, weaker sentiment, as well as lower-than-expected commodity production as downside risks to growth outlook.

However, favorable outcomes from remaining US trade negotiations, pro-growth policies in major economies together with continued demand for electrical and electronic goods, and strong tourism activity could lift Malaysia's export and growth prospects, the MPC observed.