Bank Negara maintained the overnight policy rate (OPR) at 3% in line with economists' expectations.
The central bank's benchmark lending rate has remained unchanged since May 2023 with the latest decision considering the rate to be supportive of the economy consistent with the current assessment of inflation and growth prospects.
According to the monetary policy statement issued on Thursday, the central bank expects the strength in Malaysia's economic activity to be maintained in 2025 supported by domestic demand, despite external uncertainties.
Employment and wage growth, as well as policy measures including revisions to the minimum wage and civil servant salaries will support household spending.
Meanwhile, robust growth in investment activity will be sustained by the progress of multi-year projects in both the private and public sectors, the continued high realisation of approved investments and the continued implementation of catalytic initiatives under the national master plan.
Bank Negara noted that the outlook for global growth, inflation and trade is subject to significant uncertainty regarding tariffs and other policies from major economies and geopolitical developments.
Meanwhile, growth could be lifted by greater spillovers from the global technology upswing cycle, stronger tourism activity and faster implementation of investment projects.
