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

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

Bank Negara expects the global economy to remain strong thanks to positive labour market conditions, moderating inflation and less restrictive monetary policy.

It however said this could be affected by trade and investment restrictions, with these uncertainties capable of causing greater volatility in financial markets.

The central bank said Malaysia’s economy is expected to remain strong, driven by strong domestic expenditure, with employment, wage growth and government measures supporting household spending.

“Robust expansion in investments will be sustained by the progress of multi-year projects in both private and public sectors, the continued high realisation of approved investments, as well as the ongoing implementation of catalytic initiatives under the national master plans.

“These investments, supported by higher capital imports, will raise exports and expand the productive capacity of the economy. Exports are expected to be supported by the global tech upcycle, continued growth in non-electrical and electronic goods and higher tourist spending.”

Bank Negara said the performance of the ringgit continued to be primarily driven by external factors, while the narrowing difference in interest rates with advanced economies was a positive development for Malaysia.

“While financial markets could experience bouts of volatility due to global policy uncertainties, 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.