Malaysia Interest Rate

The Central Bank of Malaysia maintained its key interest rate at 3% for the tenth consecutive period during its March 2025 meeting, in line with market expectations. The decision reflects the Board's ongoing support for the economy and aligns with its current outlook on inflation and growth. The annual inflation rate in Malaysia remained steady at 1.7% in January 2025, marking an eleven-month low for the second consecutive month. Inflation is projected to stay manageable throughout 2025, supported by easing global cost pressures and the absence of significant domestic demand imbalances. Meanwhile, the Malaysian economy posted a 5.1% growth in 2024, primarily attributed to stronger domestic demand and a robust recovery in exports. Despite global uncertainties, the outlook for 2025 remains positive, with continued strength in economic activity driven by resilient domestic demand.