Malaysia Interest Rate

The Central Bank of Malaysia held its overnight policy rate steady at 3% for the ninth consecutive meeting in October 2024, aligning with market expectations. The board remains supportive of the economy and consistent with the current assessment of inflation and growth prospects. In Malaysia, recent indicators reflect sustained economic growth, primarily driven by resilient domestic spending and robust export activity. However, the growth outlook faces potential risks, particularly from weaker-than-expected external demand and fluctuations in commodity production. Meanwhile, headline and core inflation have remained modest, averaging 1.8% year-to-date. Looking ahead to 2025, inflation is expected to stay manageable due to easing global costs and the absence of significant domestic demand pressures. Nevertheless, the inflation outlook may vary depending on the specifics of forthcoming domestic policy measures.