FX.co ★ Central Bank of Malaysia Keeps Rates Steady as Expected

Bank Negara Malaysia left its benchmark interest rate unchanged at 2.75% at its September 2026 policy meeting, in line with market expectations. The Monetary Policy Committee (MPC) stated that the current monetary policy stance remains appropriate to maintain price stability while supporting sustainable economic growth.

The central bank reported that GDP expanded by a robust 5.7% in the first half of 2026, underpinned by stronger-than-expected export performance and resilient domestic demand, despite ongoing uncertainty in the global environment. This solid momentum is expected to bring full-year 2026 growth to around 5%, while the economy’s strong fundamentals are anticipated to support continued resilience into 2027.

Headline inflation averaged 1.8% and core inflation 2.0% over the first seven months of 2026. The bank noted that price pressures are likely to remain manageable, even as higher global commodity prices—partly driven by tensions in the Middle East—weigh on the external environment.

The MPC reiterated that it will continue to closely monitor incoming data and developments, and will assess the balance of risks to both the inflation outlook and domestic growth prospects in calibrating future policy decisions.