Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on July 8th 2021, in line with expectations, as policymakers warned the balance of risks to the growth outlook remained on the downside. The monetary policy committee noted better-than-expected levels of economic activity during the first quarter, including April, but said the re-imposition of nation-wide lockdowns to curb the spread of the coronavirus will dampen the growth momentum. The central bank added that favorable external demand conditions, the digital economy, and the allowances for firms to continue operating, albeit at a reduced capacity, will continue to support growth. Finally, policymakers said the spike in headline inflation was temporary and mainly driven by baseline effects. Additionally, inflation was projected to reach the lower bound of the forecast range in 2021, while core inflation was expected to average between 0.5%-1.5% amid spare capacity in the economy. source: Central Bank of Malaysia

Interest Rate in Malaysia averaged 2.92 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 July of 2021.

Interest Rate in Malaysia is expected to be 1.75 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 1.75 in 12 months time. In the long-term, the Malaysia Interest Rate is projected to trend around 2.00 percent in 2022 and 2.50 percent in 2023, 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
2021-01-20 07:00 AM 1.75% 1.75% 1.5% 1.5%
2021-03-04 07:00 AM 1.75% 1.75% 1.75% 1.75%
2021-05-06 07:00 AM 1.75% 1.75% 1.75% 1.75%
2021-07-08 07:00 AM 1.75% 1.75% 1.75% 1.75%
2021-09-09 07:00 AM 1.75%
2021-11-03 07:00 AM


News Stream
Malaysia Leaves Key Rate at Record Low of 1.75%
Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on July 8th 2021, in line with expectations, as policymakers warned the balance of risks to the growth outlook remained on the downside. The monetary policy committee noted better-than-expected levels of economic activity during the first quarter, including April, but said the re-imposition of nation-wide lockdowns to curb the spread of the coronavirus will dampen the growth momentum. The central bank added that favorable external demand conditions, the digital economy, and the allowances for firms to continue operating, albeit at a reduced capacity, will continue to support growth. Finally, policymakers said the spike in headline inflation was temporary and mainly driven by baseline effects. Additionally, inflation was projected to reach the lower bound of the forecast range in 2021, while core inflation was expected to average between 0.5%-1.5% amid spare capacity in the economy.
2021-07-08
Malaysia Leaves Key Rate at 1.75%
Bank Negara Malaysia left its key overnight policy rate unchanged at a record low of 1.75 percent on May 6th 2021, amid resurging coronavirus infections and in line with expectations. The monetary policy committee said the latest indicators showed continued improvements in economic activity in the first quarter and into April. Recently, movement restrictions were reimposed at the local level with near-term effects in the economy but growth projections are seen improving, driven by stronger global demand and private sector expenditure, policymakers said. The bank added that growth will be supported by existing and new manufacturing plants, mostly in the electrical and electronics sector, as well as oil and gas. The central bank projects headline inflation to spike in Q2, in particular, due to baseline effects, and average higher between 2.5 percent and 4.0 percent through the rest of the year mainly on higher oil prices.
2021-05-06
Malaysia Keeps Key Rate Unchanged at 1.75%
Bank Negara Malaysia held its key overnight policy rate unchanged at 1.75% on March 4th 2021, as widely expected. The central bank said the latest indicators point to improvements in external demand and continued consumer spending. While the re-imposition of containment measures will affect growth in Q1, the impact is expected to be less severe than that experienced in Q2 of 2020. Going forward, growth is projected to improve from the second quarter onwards, driven by the recovery in global demand, increased public and private sector expenditure amid continued support from policy measures and more targeted containment measures. The inflation is projected to average higher, primarily due to rising global oil prices. In terms of trajectory, headline inflation is anticipated to temporarily spike in the second quarter of 2021 due to the lower base from the low domestic retail fuel prices in the corresponding quarter of 2020, before moderating thereafter.
2021-03-04
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 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.