The central bank last adjusted the OPR in July 2025, when it lowered the rate from 3% as a pre-emptive measure to cushion growth against external headwinds.

BNM said in a statement that global growth remained steady in the first quarter of 2026, supported by strong domestic demand and expansion in the technology sector.

However, it warned that rising energy and commodity prices, along with supply chain disruptions linked to the Middle East conflict, were “beginning to weigh on global momentum”.

The bank said headline and core inflation averaged 1.6% and 2.1%, respectively, in the first quarter of 2026, but warned that higher global commodity prices could push domestic cost pressures higher.

However, it said the impact would remain contained, given domestic policy measures and stable demand conditions.

The domestic growth outlook was largely unchanged from March, with the bank pointing to sustained household spending, E&E export strength, multi-year infrastructure projects and continued tourism activity as key supports.

“Nevertheless, Malaysia’s strong fundamentals will continue to underpin the economy’s resilience,” BNM added.