Bank Negara Malaysia Expected to Hold Interest Rates
Bank Negara Malaysia is expected to maintain its overnight policy rate at 2.75 per cent during its final policy meeting on November 5, 2026.
Economists expect Bank Negara Malaysia to maintain its overnight policy rate at 2.75 per cent during its final policy meeting on November 5, 2026. A Bloomberg survey shows 17 of 23 economists predict rates will remain unchanged, while six forecast a 25-basis point hike.
The central bank has held borrowing costs steady since July 2025, when it implemented a preemptive cut to mitigate the impact of higher US tariffs. Current economic growth remains strong, supported by private consumption, investment, and AI-related electronics exports. This growth provides the bank with the flexibility to hold rates steady despite global economic volatility.
While inflation has remained moderate due to government subsidies and Malaysia's position as a net energy exporter, global oil prices have surged following conflict in the Middle East. Governor Shaik Abdul Rasheed Abdul Ghaffour stated the bank is ready to act if inflation pressures intensify. Analysts from HSBC and CIMB Bank anticipate a 25-basis point hike in early 2027 to normalize policy and counter projected rises in core inflation.
