FX.co ★ Malaysia Holds Policy Rate Steady at 2.75%

In November 2025, the Central Bank of Malaysia opted to maintain its key interest rate at 2.75% for the second meeting in a row, aligning with market forecasts. The board considered this decision to be fitting and conducive to economic expansion amid stable price levels. Inflation rates for headline and core categories averaged 1.4% and 1.9%, respectively. Forecasts for 2026 suggest that headline inflation will remain moderate as global cost pressures continue to ease, with core inflation expected to remain steady and close to its historical average. Recent figures revealed that the GDP performance in the third quarter exceeded expectations, bolstered by persistent domestic demand, sturdy exports in the electrical and electronics sectors, and a rebound in commodity production. The initiatives outlined in Budget 2026 are anticipated to further spur growth. Moving forward, robust domestic demand is predicted to sustain growth into 2026; however, the outlook remains uncertain due to potential global developments.