Malaysia Interest Rate

The Central Bank of Malaysia kept its key interest rate unchanged at 3% for the tenth consecutive meeting in January 2025, in line with market expectations. The board remained supportive of economic growth and consistent with the current evaluation of inflation and growth prospects. In 2024, Malaysia’s economic growth aligned with expectations, driven by robust domestic expenditure, bolstered by steady employment, wage growth, and supportive policy measures. Looking ahead, economic activity in 2025 is expected to remain resilient, underpinned by the same factors that supported growth in 2024. Meanwhile, headline and core inflation averaged 1.8% in 2024, reflecting manageable price pressures. For 2025, inflation is anticipated to remain under control, aided by easing global cost conditions and the absence of significant domestic demand pressures. However, the inflation outlook may be influenced by domestic policy measures, global commodity prices, and financial market trends.