Bank Negara Malaysia projects 2026 inflation to remain moderate between 2.5% and 3.5%, citing stable domestic demand. However, it warns of potential risks from global economic slowdown and supply chain disruptions, urging vigilance.
Bank Negara Malaysia (BNM), in its latest economic outlook report, projected that Malaysia's inflation rate for 2026 would remain moderate, ranging between 2.5% and 3.5%. This forecast is primarily underpinned by stable domestic demand and continued government subsidies on essential goods. However, BNM also highlighted external risks, including a slowdown in global economic growth, potential volatility in energy and food prices due to geopolitical tensions, and possible supply chain disruptions. Despite these concerns, the central bank reiterated that its monetary policy would continue to support economic growth while ensuring price stability. Analysts believe BNM's cautious stance indicates that global uncertainties remain a key concern despite robust domestic fundamentals. The Overnight Policy Rate (OPR) is expected to be maintained at 3.00% as BNM assesses global economic developments.
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