Bank Negara Malaysia kept its overnight policy rate at 2.75% for a seventh consecutive meeting in September 2026, extending a year-long pause that began after its 25-basis-point cut in July 2025. The decision was widely expected, with 20 of 22 economists in a Bloomberg survey and 29 of 31 in a Reuters poll forecasting no change. Malaysia’s gross domestic product grew 6% in the second quarter from a year earlier, taking first-half growth to 5.7% and exceeding the central bank’s 4% to 5% growth band for 2026. Bank Negara now expects full-year expansion of around 5%, supported by technology-related exports, tourism, investment and domestic demand, with momentum expected to continue into 2027. Headline and core inflation averaged 1.8% and 2%, respectively, in the first seven months of 2026, while July headline inflation was 1.8%. The central bank said its current stance remains consistent with price stability and sustainable growth, but flagged risks from a prolonged Middle East conflict and lower commodity production. Investors are watching for any shift toward policy normalisation, with ringgit swaps pricing roughly 25 basis points of tightening over the next 12 months. Malaysia’s stock exchange and the ringgit were largely unchanged after the announcement.