Kuala Lumpur, 23 January 2026 – Economists have observed a shift in tone from Bank Negara Malaysia (BNM), from cautious resilience toward a stance validated by steady economic performance, as the central bank maintained its overnight policy rate (OPR) at 2.75 per cent in its first policy meeting of 2026. This marks a continuation of Malaysia’s measured monetary strategy amid a backdrop of moderate inflation and resilient growth expectations.
The move to keep the key interest rate unchanged, widely expected by economists, reflects a belief that Malaysia’s domestic demand remains robust, anchoring growth prospects in the face of external uncertainties such as global tariff developments and slowing trade momentum. Analysts see the central bank’s stance as “appropriate and supportive of the economy amid price stability,” aligning with data showing a late-2025 acceleration in economic activity.
Economists say Bank Negara’s cautious yet confident language signals confidence in Malaysia’s macroeconomic fundamentals, which include a resilient labour market, manageable inflation, and buoyant consumer spending. Polls of economists ahead of the meeting had anticipated the decision, underscoring broad consensus on the need to maintain policy continuity rather than tighten or loosen prematurely.
The central bank’s approach, combining a pragmatic policy stance with forward-looking guidance, has helped stabilise expectations among investors and businesses. A stable OPR stance also supports the Malaysian ringgit, which has recently shown strength against the U.S. dollar amid expectations of policy status quo and robust domestic demand.
However, economists caution that external risks remain, including the trajectory of global tariffs, potential shifts in U.S. monetary policy and fluctuations in commodity prices that could influence export performance and inflation dynamics. Should these risks crystallise, Bank Negara’s next policy decisions will likely balance support for growth with vigilance on price stability.
Overall, the shift in tone at Bank Negara, from cautious resilience toward validated strength backed by stable indicators, suggests that Malaysia’s monetary policy framework remains well-anchored to domestic economic fundamentals, even as global uncertainties persist.
