In a statement, the central bank said the current OPR level remains appropriate and supportive of the economy amid price stability. The rate has been unchanged since July 2025.

However, it also said the situation in the Middle East has added uncertainty to the global economy, with the conflict’s impact dependent on its duration and severity.

“The Malaysian economy is facing these challenges from a position of strength, with robust domestic growth, moderate inflation, sound financial sector and resilient external position,” BNM said.

The central bank also cautioned that downside risks remain from slower global trade and lower-than-expected commodity production, while upside potential could come from stronger global growth outlook, higher demand for electrical and electronic goods, and robust tourism activity.

Malaysia’s economy grew by 5.2% in 2025 and is expected to maintain momentum this year.

The inflation rate has remained unchanged at 1.6% in January, holding steady from December last year.