BENGALURU (20 JAN 2025) Bank Negara Malaysia (BNM) is expected to keep its overnight policy rate unchanged at 3.00% during its upcoming meeting on Jan 22 and maintain this rate throughout 2025, a Reuters poll of 30 economists revealed.
This marks the 10th consecutive meeting with no change, as Malaysia’s economy remains resilient, posting an estimated 5.1% growth in 2024. Inflation, at a subdued 1.8% in November, has allowed the central bank to hold steady, avoiding pressures to adjust rates.
In contrast, neighboring central banks like those in Indonesia, Thailand, and South Korea have initiated rate cuts. Economists argue that BNM’s cautious approach is aimed at supporting the ringgit, which has weakened by 2.3% since late 2024 amid global currency volatility.
BNM’s stance aligns with forecasts of 4.7% growth and 2.4% inflation for 2025, signaling confidence in economic stability while guarding against external uncertainties.
