Bank Negara Malaysia unexpectedly lowered its overnight policy rate by 25 bps to 2.75 percent during its January meeting, bringing borrowing costs to the lowest since May 2011, in an attempt to boost economic growth amid price stability. For 2020, growth is expected to gradually improve supported by resilient private spending and better export performance, while private investment is projected to remain modest. Meantime, inflation is expected to average higher but remain modest. The ceiling and floor rates of the corridor of the overnight policy rate trimmed to 3 percent and 2.50 percent, respectively.
. Interest Rate in Malaysia averaged 3 percent from 2004 until 2020, reaching an all time high of 3.50 percent in April of 2006 and a record low of 2 percent in February of 2009. source: Central Bank of Malaysia
Interest Rate in Malaysia is expected to be 2.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Malaysia to stand at 2.75 in 12 months time. In the long-term, the Malaysia Interest Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.