The central bank said at the current OPR level, the monetary policy stance remained supportive of the economy and was consistent with the current assessment of inflation and growth prospects.

“The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability,” it said in a statement.

On the economy, BNM said the latest indicators point towards sustained strength in economic activity in the second quarter of 2024, driven by resilient domestic expenditure and better export performance.

“Going forward, exports are expected to be supported by the global tech upcycle, continued strength in non-electrical and electronics goods, and higher tourist spending,” it said.

“Employment and wage growth, as well as policy measures, remain supportive of household spending.

“The robust expansion in investment activity would be sustained by the progress of multi-year projects in both the private and public sectors, the higher realisation of approved investments, as well as the implementation of catalytic initiatives under the national master plans.”

The central bank said its growth outlook was subject to downside risks from lower-than-expected external demand and commodity production.

It said both headline and core inflation averaged 1.8% year-to-date and were expected to remain manageable heading towards the new year.

“Nevertheless, the inflation outlook remains subject to the details of the implementation of announced domestic policy measures,” it said.

BNM said the ringgit continues to be primarily driven by external factors while the outcome of the US presidential election could lead to increased volatility in the near-term.

“Looking ahead, the narrowing interest rate differentials between Malaysia and the advanced economies is positive for the ringgit.

“Malaysia’s favourable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit,” it said.