NEW DELHI, November 6: Bank Negara Malaysia (BNM) kept its Overnight Policy Rate (OPR) unchanged at 2.75% on Thursday, saying the economy grew strongly in the third quarter and that 2026 growth should come in above 5%, even as higher energy costs push inflation up. The central bank has now held the rate at 2.75% at eight straight meetings since its last cut in July 2025.
Key highlights
- Decision: OPR held at 2.75%.
- Growth: indicators point to continued strength in the third quarter, driven by exports and domestic demand; 2026 growth is expected to be above 5%.
- Inflation: headline and core inflation averaged 1.8% and 1.9% so far this year, and both are expected to edge higher in 2027.
- Risks: a prolonged conflict in the Middle East and lower commodity production are the main downside risks to growth.
- Next meeting: January 21, 2027.
What BNM said
The Monetary Policy Committee said global growth remains resilient, supported by strong technology investment, but that inflation has edged up after higher energy costs and is expected to stay elevated as costs pass through to consumers. For Malaysia, it expects the external sector to remain a major driver of growth in 2027, helped by the global technology upcycle and tourist spending, with Budget 2027 measures supporting household spending. It said geopolitical developments, high commodity prices and adverse weather would put upward pressure on inflation, but that price increases should stay contained thanks to domestic policy measures and stable demand.
| Date | Decision | OPR |
|---|---|---|
| 5 Nov 2026 | Hold | 2.75% |
| 3 Sep 2026 | Hold | 2.75% |
| 9 Jul 2026 | Hold | 2.75% |
| 7 May 2026 | Hold | 2.75% |
| 5 Mar 2026 | Hold | 2.75% |
| 22 Jan 2026 | Hold | 2.75% |
| 6 Nov 2025 | Hold | 2.75% |
| 4 Sep 2025 | Hold | 2.75% |
| 9 Jul 2025 | Cut 0.25 point | 2.75% |
Our calculation
- With headline inflation averaging 1.8% this year, the OPR of 2.75% is about 0.95 percentage points above inflation.
- The rate has been unchanged for about 16 months, since the cut in July 2025.
What it means for Asia
Malaysia is in a different position from many of its neighbours. Inflation in the Philippines has reached 7.8% and Australia’s central bank raised rates this week, but Malaysia’s inflation is still below 2%, partly because of government price measures. As an oil and gas producer, Malaysia also gains some revenue from higher energy prices. For India, Malaysia is a key partner in palm oil and electronics trade, and a stable ringgit and steady growth support that trade.
What to watch
- Malaysia’s official third-quarter GDP data.
- Monthly inflation as the pass-through of energy costs continues.
- BNM’s next decision on January 21, 2027.
Bank Negara Malaysia headquarters in Kuala Lumpur. Image: User:Two hundred percent., CC BY-SA 3.0, via Wikimedia Commons. Photo source · Licence
Sources
- Bank Negara Malaysia: Monetary Policy Statement, November 5, 2026
- Bank Negara Malaysia: OPR decisions
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