KUALA LUMPUR (Nov 5): Malaysia’s central bank stood pat again on Thursday as most expected, holding that the current benchmark interest rate matches its outlook on inflation and growth.

The overnight policy rate was maintained at 2.75% following the last of six scheduled reviews for the year, Bank Negara Malaysia (BNM) said in a statement on Thursday. The move was correctly predicted by 17 of 23 economists polled by Bloomberg, while six called for a 25-basis-point increase.

The current monetary policy stance is “consistent with the outlook of continued price stability and sustainable economic growth”, the central bank said.

BNM has opted for a pause at every scheduled review since cutting the policy rate by 25 basis points in July last year, with the economy relatively unscathed from US tariffs and thriving in recent quarters even as the Iran war raged on.

Malaysia’s economy expanded at a solid 5.3% year-on-year clip in the third quarter. Exports of electronics, in particular, have surged thanks to a boom in artificial intelligence. Generous subsidies and price control, meanwhile, helped keep inflation at under 2%.

Going into 2027, BNM flagged that both headline and core inflation are expected to remain contained thanks to domestic policy measures and stable demand conditions.

However, the central bank said it is monitoring cost pressures and domestic demand conditions for their impact on the inflation outlook that will be shaped by geopolitical developments, elevated global commodity prices and adverse weather conditions.

“The solid growth momentum is expected to bring 2026 growth to above 5%,” BNM said. “Looking ahead, the economy’s sound fundamentals are expected to keep growth resilient in 2027.” External trade is expected to continue driving growth, while stable labour market conditions and ongoing investment activity will remain supportive of domestic demand, the central bank added.

Schedule of monetary policy decisions for 2027: