Interest Rate in Malaysia
Malaysia - Interest Rate
BNM leaves policy rate unchanged in November
At its 8 November meeting, the Monetary Policy Committee of Bank Negara Malaysia stood pat and left the overnight policy rate unchanged at 3.25%, where it has been since January. The decision met market expectations.
The committee’s decision came amid very low headline inflation, which remained below 1% in September. Moreover, underlying inflationary pressures were also muted due to soft demand pressures, and the Bank highlighted downside risks to growth going forward. Coupled with stability in the FX and financial markets, this led the Bank to decide it was premature to start raising rates. Despite this, the economy is currently performing fairly well, buoyed by private consumption. As a result, there was no need for a rate cut despite low inflation.
In its communiqué, the Bank maintained the neutral tone of its last meeting. The Bank stated that it expects the domestic economy “to remain on a steady growth path in 2018 and 2019”, with headline inflation increasing next year but core inflation staying subdued. The Bank pledged to “continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation”.
The next monetary policy meeting is scheduled for 23–24 January 2019.
Malaysia Interest Rate Forecast
With inflation set to remain mild next year despite a slight uptick, there will be little pressure on the Central Bank to sharply increase rates. FocusEconomics panelists expect the overnight policy rate to end 2019 at 3.29%. In 2020, panelists see the policy rate ending the year at 3.31%.
Malaysia - Interest Rate Data
| 2013 | 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%) | 3.00 | 3.25 | 3.25 | 3.00 | 3.00 |
Malaysia Interest Rate Chart
Source: Malaysia Central Bank.
Malaysia Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 4.07 | 0.15 % | Jan 14 |
| Exchange Rate | 4.10 | 0.0 % | Jan 14 |
| Stock Market | 1,676 | -0.29 % | Jan 14 |
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Economic News
Malaysia: Growth in industrial output slows in November
January 11, 2019
Industrial production growth eased to 2.5% in November over the same month a year earlier from a revised 4.3% in October; November’s result was, however, above market expectations of a bigger moderation.
Malaysia: Exports growth slows markedly in November
January 4, 2019
Exports grew 1.1% in November over the same month a year earlier in USD terms.
Malaysia: Manufacturing conditions continue to worsen in December
January 2, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by Nikkei and IHS Markit, fell from 48.2 in November to 46.8 in December, the lowest reading since the survey began in July 2012. The ongoing deterioration in operating conditions in December came on the heels of weakening output levels and demand, both domestic and overseas.
Malaysia: Inflation moderates in November
December 19, 2018
In November consumer prices rose 0.25% over the previous month, up from October’s 0.17% increase.
Malaysia: Industrial production output picks up pace in October
December 12, 2018
Growth in industrial production accelerated rapidly to 4.2% in October over a year ago, up from 2.3% in September.
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