Heteronomics Archive

March 06, 2025

Malaysia: Policy Rate Held At 3.0% (Consensus 3.0%) in Mar-25

Despite global uncertainties, Bank Negara Malaysia maintained the policy rate at 3%, citing sustained economic resilience, robust domestic demand, and investment activity. The 5.1% GDP growth in 2024 supports the decision, although external risks remain.
Inflationary pressures remain contained, with headline inflation at 1.7% in early 2025, supported by easing global cost conditions and lower commodity prices. However, upside risks persist from domestic policy spillovers and external factors, including financial market volatility and trade policy shifts.
The ringgit remains influenced by external factors, with narrowing interest rate differentials providing support amid global uncertainty. The MPC’s data-dependent approach ensures monetary policy remains conducive to growth while preserving price stability.

January 22, 2025

Bank Negara Malaysia maintained the Overnight Policy Rate at 3%, consistent with consensus expectations, citing sustained economic growth and manageable inflationary pressures. The decision reflects a balanced approach amid moderating global inflation and easing monetary policy conditions globally.
Domestic growth remains resilient, driven by robust investment and household spending, but risks such as a potential global slowdown, trade restrictions, and commodity production volatility could weigh on the outlook. Upside growth potential exists from stronger spillovers in technology, tourism, and faster investment execution.
Inflation is expected to remain contained in 2025, supported by easing cost pressures, though spillover effects from domestic policies and fluctuations in commodity prices could introduce upside risks. The MPC’s vigilant, data-driven approach underscores its commitment to sustainable growth and price stability.

November 06, 2024

Bank Negara Malaysia's MPC maintained its official policy rate at 3%, in line with forecasts, highlighting sustained economic strength and controlled inflation.
Inflation, currently moderate, faces potential upside risks from domestic policy effects, global commodity prices, and financial market changes.
The MPC's data-dependent stance implies ongoing assessments of inflation and growth developments will inform future rate decisions.

September 05, 2024

Bank Negara Malaysia held the OPR at 3%, consistent with expectations, reflecting a supportive stance for growth amid moderate inflation and global trade recovery.
Future interest rate policies will depend on the balance between downside risks such as weaker external demand and commodity production, and upside risks from the global tech upcycle and increased investment activity.
It expects inflation to remain below 3%, with the outlook dependent on domestic policy measures regarding subsidies, price controls, and global commodity price movements.