Bank Negara Malaysia (BNM) voted to maintain its benchmark Overnight Policy Rate at 2.75% at the conclusion of its Monetary Policy Committee (MPC) meeting on Thursday.
The decision, which matched the consensus forecast tracked by Investing.com, keeps borrowing costs at their current level after keeping the rate unchanged in its previous policy move as well.
The MPC said the decision is supported by resilient global growth amid global tech expansion and improving supply conditions and prices of key commodities.
On the inflation front, BNM noted that headline and core inflation averaged 1.7% and 2.1%, respectively, in the first five months. The impact of the Middle East conflict and global commodity prices on inflation is expected to remain contained in 2026.
The central bank said the economic growth forecast for Malaysia is expected to remain within 4%-5% for the full year, subject to downside risks from a prolonged Middle East war and lower commodity production.