Bank Negara Malaysia left its key overnight policy rate unchanged at 1.75% on January 20th 2021, compared to market forecasts of a 25bps cut. The central bank said the resurgence in local COVID-19 and the introduction of targeted containment measures has affected the recovery in Q4. Economic growth for 2020 is expected to be near the lower end of the earlier forecasted range, while for 2021 the impact of virus curbs will be less severe than in 2020. The growth is projected to improve from Q2, led by a recovery in global demand, turnaround in public and private spending, and higher output from manufacturing and mining, with the roll-out of vaccines also lifting sentiments. Meantime, 2021 headline inflation is projected to higher, primarily due to rising oil prices. The bank remains committed to utilizing its policy levers as appropriate to create conditions for a sustainable economic recovery. source: Central Bank of Malaysia

Interest Rate in Malaysia averaged 2.95 percent from 2004 until 2021, reaching an all time high of 3.50 percent in April of 2006 and a record low of 1.75 percent in July of 2020. This page provides - Malaysia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Malaysia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on February of 2021.

Interest Rate in Malaysia is expected to be 1.50 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 1.50 in 12 months time. In the long-term, the Malaysia Interest Rate is projected to trend around 1.50 percent in 2022, according to our econometric models.

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Malaysia Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 3.50 1.75 2004 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-07-07 07:00 AM 1.75% 2.0% 1.75% 1.75%
2020-09-10 07:00 AM 1.75% 1.75% 1.5% 1.5%
2020-11-03 07:00 AM 1.75% 1.75% 1.75% 1.75%
2021-01-20 07:00 AM 1.75% 1.75% 1.5% 1.5%
2021-03-04 07:00 AM 1.75% 1.5%
2021-05-06 07:00 AM 1.5%
2021-07-08 07:00 AM
2021-09-09 07:00 AM


News Stream
Malaysia Unexpectedly Holds Rates at 1.75%
Bank Negara Malaysia left its key overnight policy rate unchanged at 1.75% on January 20th 2021, compared to market forecasts of a 25bps cut. The central bank said the resurgence in local COVID-19 and the introduction of targeted containment measures has affected the recovery in Q4. Economic growth for 2020 is expected to be near the lower end of the earlier forecasted range, while for 2021 the impact of virus curbs will be less severe than in 2020. The growth is projected to improve from Q2, led by a recovery in global demand, turnaround in public and private spending, and higher output from manufacturing and mining, with the roll-out of vaccines also lifting sentiments. Meantime, 2021 headline inflation is projected to higher, primarily due to rising oil prices. The bank remains committed to utilizing its policy levers as appropriate to create conditions for a sustainable economic recovery.
2021-01-20
Malaysia Holds Rates at Record Low of 1.75%
Bank Negara Malaysia left its key overnight policy rate unchanged at 1.75 percent on November 3rd, 2020, as widely expected. The central bank said the current monetary policy stance remains accommodative given the outlook for growth and inflation. The board added that the cumulative 125bps reduction in the key interest rate so far this year will continue to provide stimulus to the economy. Policymakers expect the economic recovery in Malaysia to continue into 2021, underpinned by the recovery in global demand, turnaround in public, and private sector expenditure amid continued support from policy measures. However, the pace of recovery will be uneven across sectors, with economic activity in some industries remaining below pre-pandemic levels, and a slower improvement in the labor market. This outlook is still subject to downside risks, particularly from ongoing uncertainties surrounding the course of the pandemic domestically and globally.
2020-11-03
Malaysia Leaves Monetary Policy on Hold
The central bank of Malaysia left its key overnight policy rate unchanged at 1.75 percent on September 10th 2020, compared to market forecasts for a 25bps cut, saying the current monetary policy stance remains appropriate and accomodative given the outlook for growth and inflation. The bank added that the cumulative 125bps reduction in the key interest rate so far this year will continue to provide stimulus to the economy. Policymakers expect the economic recovery in Malaysia to continue into 2021. However, the pace of recovery will be uneven across sectors, with economic activity in some industries remaining below pre-pandemic levels, and a slower improvement in the labour market. This outlook is still subject to downside risks, particularly from ongoing uncertainties surrounding the course of the pandemic domestically and globally.
2020-09-10
Bank Negara Malaysia Cuts Rates to Record Lows
Bank Negara Malaysia lowered its Overnight Policy Rate by 25 bps to 1.75 percent during its July meeting, bringing borrowing costs to record lows, aiming to provide additional policy stimulus to accelerate the pace of economic recovery from the coronavirus-induced crisis. Policymakers said that the fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook, but the pace and strength of the recovery remain subject to downside risks emanating from both domestic and external factors. At the same time, inflationary pressures are expected to be muted in 2020, with inflation likely to be negative this year, due to global oil and commodity prices.
2020-07-07

Malaysia Interest Rate
In Malaysia, the interest rate decisions are taken by The Central Bank of Malaysia (Bank Negara Malaysia). The official interest rate is the Overnight Policy Rate.