Malaysia Interest Rate

The central bank of Malaysia kept its overnight policy rate steady at 3% for the fifth consecutive meeting in March 2024, matching market expectations. The board noted that the current monetary policy stance remains supportive of the economy and is consistent with the current assessment of the inflation and growth prospects. The country's economy expanded by 3.7% in 2023. For 2024, GDP growth is projected to range between 4% and 5%, propelled by the recovery in exports and resilient domestic expenditure. Meanwhile, headline and core inflation in January stood at 1.5% and 1.8%, respectively, trending in line with forecasts. This year, inflation is anticipated to remain moderate, broadly reflecting stable demand conditions and controlled costs. However, policymakers emphasized that this outlook remains contingent on the implementation of domestic policy on subsidies, price controls, global commodity prices, and financial market developments.