Malaysia's central bank on Thursday decided to retain the key interest rate at 3 percent as expected, saying that the current policy stance is appropriate given the expectations for robust economic growth and modest inflation.
The Monetary Policy Committee of Bank Negara Malaysia said it considers "the current stance of monetary policy to be appropriate given the outlook for inflation and growth."
The central bank's last policy change was in May 2011, when it hiked the interest rate by 25 basis points to the current level.
The MPC said though inflation is seen rising during the year, the expectation is for it to remain modest. Higher global prices of selected food commodities and domestic factors are expected to increase costs and contribute to higher prices.
Nevertheless, in line with modest global growth prospects, pressures from global commodity prices are expected to be contained, the MPC noted.
Further, the MPC noted that in the domestic economy, the latest indicators point to robust investment activity and continued expansion in private consumption. The external sector is also expected to improve and provide additional support to the economy, it noted.
The MPC said the global economy continued to be confronted with some uncertainties. While there have been improvements in the advanced economies, risks to sustained recovery remain, it cautioned.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.