The Central Bank of Malaysia kept its key interest rate unchanged at 2.75% during its March 2026 monetary policy meeting, in line with market expectations. The Board said the current policy stance remains appropriate and supportive of economic growth while maintaining price stability. Headline and core inflation in January 2026 stood at 1.6% and 2.3%, respectively. While global commodity prices may face heightened volatility due to recent developments, the impact on domestic inflation is expected to be contained. Meanwhile, the Malaysian economy grew 5.2% in 2025, supported by strong domestic demand, higher E&E exports, and robust tourism. Growth is expected to continue in 2026, backed by solid domestic demand, rising employment, and supportive policies. The Board noted uncertainties stemming from the Middle East conflict but will continue monitoring global developments and assessing risks to Malaysia’s growth and inflation.
