KUALA LUMPUR, Jan 22 — Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 2.75 per cent during its meeting today.
At the current OPR level, it considers the monetary policy stance appropriate and supportive of the economy, consistent with price stability.
“The MPC will continue to monitor ongoing developments and assess the balance of risks surrounding the outlook for domestic growth and inflation," BNM said in a statement today.
Malaysia's economic growth in 2025 is expected to be near the upper end of the forecast range and to continue in 2026, supported by resilient domestic demand.
It said that employment, wage growth, and income-related policy measures would remain supportive of household spending.
Additionally, investment activity would be driven by the progress of multi-year projects in both the private and public sectors, implementation of new, smaller-scale public projects, continued high realisation of approved investments, and the ongoing implementation of national master plans.
Meanwhile, the external sector would benefit from continued strength in electrical and electronics (E&E) exports and higher tourist spending.
“This growth outlook remains subject to uncertainties, in particular surrounding global developments.
“Downside risks remain from slower global trade and lower-than-expected commodity production,” BNM said.
The upside potential for growth could arise from a better global growth outlook, stronger demand for E&E goods, and more robust tourism activity.
Elsewhere, Malaysia's headline and core inflation averaged 1.4 per cent and 2.0 per cent, respectively, in 2025.
“For 2026, headline inflation is expected to remain moderate amid the continued easing in global cost conditions. Global commodity prices are expected to remain modest, contributing to contained domestic cost conditions.
“Core inflation in 2026 is expected to remain stable and close to its long-term average, reflecting continued expansion in economic activity and the absence of excessive demand pressures,” it said.
Globally, growth in 2025 turned out to be higher than expected, mainly reflecting lower-than-anticipated tariffs, higher artificial intelligence-led tech spending, and stronger fiscal support.
“For 2026, while the impact of tariffs could weigh on global growth, the outlook remains resilient, supported by sustained domestic demand, moderating inflation, robust tech investments, and supportive fiscal and monetary policies,” BNM said.
However, downside risks remain, arising from potentially higher tariffs, further escalation in geopolitical tensions, and heightened volatility in global financial markets.
“There are continued concerns over the elevated valuations in financial markets,” it said.
In contrast, upside potential includes stronger tech spending, a milder impact of tariffs on economic activity, and pro-growth policies in major economies.
