Bank Negara Malaysia held its overnight policy rate steady at 3.00% at the Monetary Policy Committee meeting on 9 May 2024. The decision extends a pause at the 3.00% level that began after the May 2023 hike, reflecting the central bank's assessment that the existing policy stance is consistent with the current assessment of the inflation and growth prospects.
The central bank noted that headline inflation averaged 1.7% in the first quarter of 2024, with core inflation at 1.8%. Bank Negara Malaysia cited higher economic activity in the first quarter, driven by resilient domestic expenditure and a positive turnaround in exports.
GROWTH OUTLOOK
The Monetary Policy Committee said the recovery in exports is expected to gather momentum, supported by the global tech upcycle and continued strength in non-electrical and electronics goods. The MPC said investment activity would be supported by multi-year projects, catalytic initiatives under the national master plans and higher realisation of approved investments.
POLICY STANCE
At 3.00%, Malaysia's overnight policy rate represents a level the central bank considers supportive of the economy while remaining consistent with its price stability objective. Bank Negara Malaysia has emphasised in successive policy statements that monetary policy will continue to be calibrated carefully to maintain inflation on a trajectory consistent with its medium-term assessment, and that the Monetary Policy Committee will monitor both domestic developments and external conditions closely before making any adjustments to the current stance.