KUALA LUMPUR (Jan 22): Economists continue to expect Malaysia’s central bank to maintain its key interest rate throughout this year, unless an excessive demand pressure or tariff shock emerges. Domestic demand remains resilient and is expected to continue anchoring the economy in 2026, while the tariff impact has been mild as AI-related demand bolstered electronics exports, economists noted. Meanwhile, core inflation is expected to remain stable, though on “the absence of excessive demand pressures”, it added, quoting BNM. “Finally, BNM seems comfortable with the inflation trajectory, which should preserve policy space for a rate cut if required,” she added. MBSB Research noted the upcoming Sara cash assistance in February may fuel demand-pull inflation; inflation is expected to stay moderate in 2026 with a slight uptick.

Source: The Edge Markets January 22, 2026 09:49 UTC