KUALA LUMPUR: Bank Negara Malaysia (BNM) has maintained the overnight policy rate (OPR) at 3 per cent.
"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 central bank said in its monetray policy statement today.
BNM said the global economy continues to expand amid resilient labour markets and continued recovery in global trade.
It added that global growth is expected to be sustained by positive labour market conditions, moderating inflation and less restrictive monetary policy.
"Global trade recovery is expected to continue, supported by both electrical and electronics (E&E) as well as non-E&E products."
"The growth outlook remains subject to downside risks, mainly from further escalation of geopolitical tensions, heightened volatility in global financial markets, and slower growth momentum in major economies," it added.
According to BNM, for the Malaysian economy, the latest indicators point towards sustained strength in economic activity driven by resilient domestic expenditure and higher export activity.
The central bank added that exports are expected to be supported by the global tech upcycle, continued strength in the non-E&E goods as well as higher tourist 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."
"These investments, supported by higher capital imports, will raise exports and expand the productive capacity of the economy," the statement said.
BNM also added that the 2025 Budget measures will provide additional support to growth, with the growth outlook being subjected to downside risks from lower-than-expected external demand and commodity production.
Meanwhile, headline and core inflation remain modest, averaging 1.8 per cent year-to-date (YTD).
"Going into 2025, inflation is expected to remain manageable, amid the easing global cost conditions and the absence of excessive domestic demand pressures."Nevertheless, the inflation outlook remains subject to the details of the implementation of announced domestic policy measures," it added.