Archive

January 22, 2025
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Malaysia: Policy Rate Held At 3.0% (Consensus 3.0%) in Jan-25

  • 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
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Malaysia: Policy Rate Held At 3.0% (Consensus 3.0%) in Nov-24

  • 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
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Malaysia Policy Rate 3.0% (consensus 3.0%) in Sep-24

  • 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.

July 11, 2024
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Malaysia Policy Rate 3.0% (consensus 3.0%) in Jul-24

  • Bank Negara Malaysia maintained the OPR at 3.00%, aligning with the economic consensus amid a cautious approach to managing inflation and supporting economic growth.
  • Future interest rate policies will be influenced by global economic stability, the strength of the domestic tech upcycle, and the impact of domestic policy measures on subsidies and price controls.
  • Inflation is expected to rise moderately in the second half of 2024 due to subsidy rationalization. Still, overall pressures are mitigated by targeted measures to support businesses, with headline and core inflation projected to average between 2.0% - 3.5% and 2.0% - 3.0%, respectively.