KUALA LUMPUR, Jan 22 — Bank Negara Malaysia (BNM) today announced its decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, saying the current monetary policy stance is supportive of the economy amid stable prices.

The central bank's Monetary Policy Committee (MPC) said it expects Malaysia's economic growth momentum to continue in 2026, driven by resilient domestic demand.

BNM highlighted that household spending will be supported by stable employment, wage growth, and income-related government policies.

At the same time, investment activity is expected to be driven by the progress of multi-year infrastructure projects, the implementation of national master plans, and a high realisation of approved investments.

On the external front, the central bank said Malaysia will benefit from continued strength in electrical and electronics (E&E) exports and higher tourist spending.

Regarding inflation, BNM said both headline and core inflation are expected to remain moderate in 2026. It noted that global commodity prices are forecast to remain modest, which will help contain domestic cost pressures.

Globally, the outlook for 2026 also remains resilient, supported by sustained domestic demand in major economies, moderating inflation, and robust tech investments.

However, the MPC cautioned that the growth outlook for both Malaysia and the world remains subject to uncertainties.

Downside risks include the potential for higher-than-expected tariffs, an escalation in geopolitical tensions, slower global trade, and heightened volatility in global financial markets.