Bank Negara Malaysia (BNM), the central bank of Malaysia, has chosen to keep its benchmark interest rate at 3.00% for the second consecutive meeting, despite the presence of decelerating economic growth and inflationary pressures.

The monetary policy stance of the bank continues to be accommodative towards the economy and is in line with the expectations for inflation and economic growth.

In 2022, the economy experienced a notable upswing, reaching a level not seen in the past 22 years, with a growth rate of 8.7%. However, subsequent to this peak, the economy has seen a deceleration primarily attributed to the underperformance of exports.

The central bank, Bank Negara Malaysia (BNM), has issued a warning against the potential negative impact on the economy due to external demand that falls short of expectations.

Additionally, BNM anticipates a decrease in headline inflation during the latter part of the year.