The Central Bank of Malaysia left its benchmark interest rate unchanged at 2.75% at its March 2026 monetary policy meeting, in line with market expectations. The Board stated that the current policy stance remains appropriate and continues to support economic growth while preserving price stability.
In January 2026, headline inflation stood at 1.6%, while core inflation registered 2.3%. Although recent global developments may heighten volatility in commodity prices, the impact on domestic inflation is expected to remain contained.
The Malaysian economy expanded by 5.2% in 2025, driven by resilient domestic demand, stronger exports of electrical and electronic (E&E) products, and a robust tourism sector. Growth is projected to continue in 2026, underpinned by solid domestic demand, rising employment, and supportive policy measures.
The Board highlighted ongoing uncertainties related to the conflict in the Middle East and emphasized that it will continue to closely monitor global developments and assess the implications for Malaysia’s growth and inflation outlook.
