Malaysia

Mildly restrictive

Policy rate

2.75%

Last move Jul 2025

Inflation

1.38%

As of null

Real policy rate

1.37%

Policy rate less inflation

Debt to GDP

69.50%

2026 est.

Inflation targetNone published

Policy rate vs target—

Last move-25 bps cut

Months at current rate14

Real GDP growth4.70%

Next scheduled decisionNot published

Policy rate path, latest five years. Cycle peak 11.00% (Dec 1997).

The verdict

Malaysia sets its policy rate at 2.75%, against inflation of 1.38% — a real rate of 1.37% after inflation. The most recent decision was a 25bp cut in Jul 2025. The rate has held there for about 14 months. Inflation targeting: No explicit target; flexible monetary policy framework. On the fiscal side, the economy carries government debt of 69.5% of GDP (2026 est.) and real GDP growth of 4.7%.

Sources: policy rate and cycle history — BIS central bank policy rates (WS_CBPOL); inflation — national statistical agencies; debt and growth — IMF World Economic Outlook. Methodology: https://www.globalfinancialinfo.info/methodology/policy-rates · Dataset: https://www.globalfinancialinfo.info/global-economy · Free to print and share for non-commercial classroom use (CC BY-NC-ND 4.0).

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