Malaysia’s macro policy stance remains steady - but not still. Bank Negara Malaysia (BNM) is holding rates firm, the Ringgit is under pressure and signs of financial tightening are quietly building. Black market rates have started creeping back in, retail card usage overseas is facing new restrictions and the central bank is clearly watching capital flows more closely. Having said that - the labour market is still doing its job and digital banking momentum continues. The broader outlook remains service led but with external risks rising and reform urgency returning, the stakes are going up.
Monetary Policy
BNM stayed put at its May meeting keeping the Overnight Policy Rate at 3.00% for the twelfth straight month. There has been no shift in tone. Policymakers remain comfortable with inflation dynamics (still tracking between 2.0% and 3.5%) and see no reason to move prematurely. Domestic demand is holding and the bank’s message is clear - steady hands in a shaky region. Even so, growth r...
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