Malaysia: Central Bank leaves rates unchanged in November
Bank stands pat again: At its meeting on 6 November, Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 2.75%, mirroring September’s decision.
Strong GDP growth and muted inflation motivate hold: The Bank did not cut the policy rate as the economy performed better than expected due to resilient domestic demand. Conversely, the BNM did not increase the policy rate as it projected both headline and core inflation to remain tame through 2026 on soft commodity prices.
Rates likely to remain on hold through 2026: Most of our panelists expect the policy rate to stay on hold until the end of 2026 as inflation remains subdued and GDP growth hovers near 2025’s projected level. That said, several panelists see room for a 25 basis point cut next year.