FX.co ★ Malaysia Holds Rates Steady as Expected

Bank Negara Malaysia left its benchmark interest rate unchanged at 2.75% at its July 2026 policy meeting, in line with market expectations. The Monetary Policy Committee (MPC) stated that the current policy stance remains appropriate and is consistent with the outlook for continued price stability and sustainable economic growth.

The central bank noted that the Malaysian economy remained resilient in the second quarter, supported by firm domestic demand and stronger‑than‑expected exports. It also reaffirmed its 2026 GDP growth forecast at 4% to 5%.

In the first five months of 2026, headline inflation averaged 1.7%, while core inflation stood at 2.1%. The MPC expects inflation to remain contained, despite elevated global commodity prices stemming from tensions in the Middle East.

The committee reiterated that it will stay vigilant and continue to assess the balance of risks to the domestic inflation and growth outlook.