BNM Forecasts Moderate Inflation for 2026, Supporting Economic Growth

March 4, 2026
Economy
Bloomberg

Bank Negara Malaysia (BNM) projects inflation to remain moderate, between 2.5% and 3.5% for 2026, which is expected to help stabilize consumer spending. This forecast suggests that monetary policy may remain unchanged in the near term, providing a supportive environment for sustained economic recovery. BNM emphasizes a data-dependent approach to future policy decisions.

Bank Negara Malaysia (BNM) today released its latest economic outlook, projecting a moderate inflation rate for the full year 2026, expected to hover between 2.5% and 3.5%. The BNM Governor stated that despite potential global supply chain risks, stable domestic demand and government subsidy measures would help contain price increases. This forecast provides market stability, suggesting that BNM is likely to maintain the Overnight Policy Rate (OPR) at 3.00% in its upcoming Monetary Policy Committee meeting. A moderate inflationary environment will support consumer purchasing power and offer more predictable operating costs for businesses, thereby fostering sustained economic growth. BNM will continue to monitor domestic and international economic developments closely to ensure price stability and sustainable growth.
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