The central bank of Malaysia unexpectedly raised its key overnight policy rate (OPR) by 25bps to 3% on May 3rd, 2023, marking the first increase since November and pushing borrowing costs to the highest level since 2019 due to looming inflation risks. While the markets were hoping for steady rates, policymakers emphasized the resilience of domestic growth prospects and deemed it necessary to normalize the degree of monetary accommodation further and withdraw the monetary stimulus aimed at addressing the COVID-19 crisis. Both headline and core inflation are projected to moderate to an average of 2.8%-3.8% this year, while GDP growth is anticipated to be driven by domestic demand. The ceiling and floor rates of the OPR corridor have been lifted to 3.25% and 2.75%, respectively. source: Central Bank of Malaysia

Interest Rate in Malaysia averaged 2.85 percent from 2004 until 2023, 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 June of 2023.

Interest Rate in Malaysia is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Malaysia Interest Rate is projected to trend around 2.25 percent in 2024 and 2.00 percent in 2025, according to our econometric models.

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Malaysia Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2023-01-19 07:00 AM 2.75% 2.75% 3% 3%
2023-03-09 07:00 AM 2.75% 2.75% 2.75% 2.75%
2023-05-03 07:00 AM 3% 2.75% 2.75% 2.75%
2023-07-06 07:00 AM 3% 3.0%
2023-09-07 07:00 AM
2023-11-02 07:00 AM


Related Last Previous Unit Reference
Interest Rate 3.00 3.00 percent Jun 2023
Money Supply M1 595879.32 597566.41 MYR Million Apr 2023
Money Supply M0 149585.74 146427.09 MYR Million Apr 2023
Money Supply M2 2278789.26 2283769.12 MYR Million Apr 2023
Money Supply M3 2287421.06 2292066.48 MYR Million Apr 2023
Foreign Exchange Reserves 114422.60 115491.34 USD Million Apr 2023
Banks Balance Sheet 3383515.29 3392002.56 MYR Million Apr 2023
Loans to Private Sector 2224501.75 2224441.40 MYR Million Apr 2023
Cash Reserve Ratio 2.00 2.00 percent May 2023
Central Bank Balance Sheet 617556.58 627469.10 MYR Million Apr 2023

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.
Actual Previous Highest Lowest Dates Unit Frequency
3.00 3.00 3.50 1.75 2004 - 2023 percent Daily

News Stream
Central Bank of Malaysia Raises Rates
The central bank of Malaysia unexpectedly raised its key overnight policy rate (OPR) by 25bps to 3% on May 3rd, 2023, marking the first increase since November and pushing borrowing costs to the highest level since 2019 due to looming inflation risks. While the markets were hoping for steady rates, policymakers emphasized the resilience of domestic growth prospects and deemed it necessary to normalize the degree of monetary accommodation further and withdraw the monetary stimulus aimed at addressing the COVID-19 crisis. Both headline and core inflation are projected to moderate to an average of 2.8%-3.8% this year, while GDP growth is anticipated to be driven by domestic demand. The ceiling and floor rates of the OPR corridor have been lifted to 3.25% and 2.75%, respectively.
2023-05-03
Malaysia Leaves Rates Steady
The central bank of Malaysia left its key overnight policy rate at 2.75% for the second consecutive meeting in March 2023, in line with expectations, as policymakers consider the current stance of monetary policy remains accommodative and supportive of economic growth. However, the central banks raised concerns regarding an expected slowdown in global growth. The Malaysian economy is expected to moderate in 2023 amid a slower global economy while domestic demand will remain the key driver. The government expects economic growth of 4.5% in 2023, down from a 22-year high of 8.7% in 2022. Meanwhile, the central bank expects inflation are expected to moderate over the course of 2023, but to continue elevated amid lingering demand and cost factors.
2023-03-09
Malaysia Surprisingly Leaves Interest Rate Steady
The central bank of Malaysia left its key overnight policy rate steady at 2.75% in the first meeting of 2023, defying market forecasts of a 25bps increase, saying it wants to assess the impact of the previous four rate hikes. Policymakers noted that the current policy stance remains accommodative and supportive of economic growth and further normalisation would depend on the evolving conditions and their implications to the domestic inflation and growth outlook. Meanwhile, policymakers expect growth for Malaysia in 2022 to exceed the earlier projected 6.5% - 7.0% and to moderate in 2023. Inflation is also expected to slow this year.
2023-01-19