Malaysia Central Bank Keeps Rate On Hold

(RTTNews) - Malaysia's central bank retained its key interest rate on Thursday, as economic growth accelerated despite global trade tensions.

At the final rate-setting meeting of the year, the Monetary Policy Committee of Bank Negara Malaysia decided to leave the Overnight Policy Rate unchanged at 2.75 percent.

The bank had reduced the rate by a quarter-point in July, which was the first reduction in five years.

"At the current OPR level, the MPC considers the monetary policy stance to be appropriate and supportive of the economy amid price stability," the bank said in a statement.

"The MPC will continue to monitor ongoing developments and assess the balance of risks surrounding the outlook for domestic growth and inflation," the bank added.

The committee observed that sustained domestic demand, resilient electrical and electronics exports, and recovery in commodity production supported economic growth in the third quarter. Going forward, resilient domestic demand will continue to support growth going into 2026, the MPC said.

Regarding prices, the committee noted that headline inflation is likely to remain moderate in 2026 and core inflation is expected to remain stable and close to its long-term average.