Bank Negara Malaysia (BNM) kept the overnight policy rate (OPR) at 3% following the end of the Monetary Policy Committee (MPC) meeting on Thursday.
In its statement, the central bank said the current level of OPR is appropriate to support the economy and is consistent with the current assessment of inflation and growth prospects.
The MPC remains alert to ongoing developments by assessing domestic inflation and its trajectory. They will ensure that the stance of monetary policy remains conducive to sustainable economic growth amid price stability.
BNM last raised the OPR from 2.75% to 3% in May 2023 and kept the benchmark rate stable at seven consecutive MPC meetings to date.
The central bank has reduced the OPR to its lowest level of 1.75% in July 2020 after the Covid-19 pandemic.
They then reversed course and raised the OPR by a cumulative 125 basis points between May 2022 and May 2023.
Looking at Malaysia's economic sentiment, BNM said the latest indicators point towards sustained strength in economic activity in the second quarter of 2024, driven by resilient domestic spending and better export performance.
His decision to retain the OPR had been widely expected.
In a recent Bloomberg News survey, all 22 economists predicted BNM would leave the OPR unchanged.
