Malaysia Holds Policy Rate Steady at 2.75%

The Central Bank of Malaysia kept its key interest rate unchanged at 2.75% for a 2nd consecutive meeting in November 2025, in line with market expectations. The board said the decision was appropriate and supportive of economic growth amid stable prices. Year-to-date, headline and core inflation averaged 1.4% and 1.9%, respectively. Looking ahead, headline inflation is expected to remain moderate in 2026 amid continued easing in global cost pressures, while core inflation is projected to stay stable and close to its long-term average. On the growth front, recent data indicate better-than-expected GDP performance in Q3 2025, driven by sustained domestic demand, resilient electrical and electronics exports, and a recovery in commodity production. Measures under Budget 2026 are also expected to support growth. Looking ahead, resilient domestic demand should continue to underpin growth into 2026. However, the outlook remains uncertain, particularly due to potential global developments.