Malaysia Holds Rate, Warns Middle East War Intensifies Risks

Malaysia kept its benchmark interest rate unchanged as it warned that downside risks have risen from the deepening conflict in the Middle East.

Bank Negara Malaysia held the overnight policy rate at 2.75% on Thursday, a move seen by all 24 economists in a Bloomberg survey. It has adjusted borrowing costs just once in the past two years, with a quarter-point cut in July 2025 to shore up the economy against US tariff hikes.