The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 2.75%. The decision reflects the MPC’s assessment that the current monetary policy stance remains appropriate to support sustainable economic growth while maintaining price stability.

Global Economy Shows Continued Expansion

According to the committee, latest data suggest that global economic growth continues to expand, supported by resilient labour markets, moderating inflation, and less restrictive monetary policies across major economies. The easing of trade tensions through recent negotiations has also reduced some uncertainty.

Nevertheless, several downside risks persist. These include the potential for new or higher tariffs, escalating geopolitical tensions, and elevated financial market valuations. On the upside, a milder impact of tariffs and pro-growth measures in major economies could further support global activity.

Malaysia’s Economy Strengthened By Domestic Demand And Exports

Malaysia recorded better-than-expected growth in the third quarter of 2025, driven by sustained domestic spending, resilient electrical and electronics (E&E) exports, and recovering commodity production.

Looking ahead to 2026, domestic demand is expected to remain the main growth driver. Employment gains, steady wage growth, and income-support measures will continue to sustain household spending. Investment activity is also expected to expand, supported by multi-year projects in both private and public sectors, the realisation of approved investments, and ongoing national initiatives under the Thirteenth Malaysia Plan (RMK13).

Budget 2026 measures will further reinforce growth. However, uncertainties linked to global trade, commodity output, and business sentiment continue to pose potential risks. At the same time, stronger global demand for E&E goods and a more vibrant tourism sector could offer upside potential.

Inflation Expected To Stay Moderate

For the year to date, headline inflation averaged 1.4%, while core inflation stood at 1.9%. Moving into 2026, headline inflation is projected to remain moderate, reflecting the easing of global cost pressures and stable commodity prices.

Core inflation is expected to stay close to its long-term average, consistent with a steady pace of economic expansion and the absence of strong demand-driven pressures. The overall effect of ongoing domestic policy reforms on inflation is projected to be limited.

Monetary Policy To Remain Supportive Of Growth

The MPC noted that, at the current OPR level, monetary policy continues to support the economy in an environment of stable prices. The Committee will continue to monitor global and domestic developments, assessing risks to both growth and inflation to ensure that policy settings remain conducive to sustainable economic progress.

MPC Meeting Schedule For 2026

BNM also announced the schedule of MPC meetings for 2026, in line with the Central Bank of Malaysia Act 2009. The MPC will convene six times during the year, with the Monetary Policy Statement to be released at 3:00 p.m. after each meeting:

Meeting	Date
1st	22 January 2026 (Thursday)
2nd	5 March 2026 (Thursday)
3rd	7 May 2026 (Thursday)
4th	9 July 2026 (Thursday)
5th	3 September 2026 (Thursday)
6th	5 November 2026 (Thursday)

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