Malaysia at a glance: policy rate at 2.75 percent, July inflation at 1.8 percent, trade surplus at RM22.5 billion
Bank Negara Malaysia observed that the ringgit depreciated 0.5 percent against the United States dollar in July 2026 and that the nominal effective exchange rate declined 1.2 percent.
Reporting sourcesBank Negara MalaysiaBank Negara MalaysiaDepartment of Statistics Malaysia
Policy. The Monetary Policy Committee of Bank Negara Malaysia decided to maintain the Overnight Policy Rate at 2.75 percent, in the Monetary Policy Statement published on 3 September 2026. Bank Negara Malaysia stated that the current Overnight Policy Rate level is consistent with continued price stability and sustainable growth.
Prices. The Consumer Price Index rose 1.8 percent year on year in July 2026 compared with 1.9 percent in June 2026, in the Department of Statistics Malaysia release published on 17 August 2026. Transport inflation was 1.4 percent in July 2026 compared with 2.8 percent in June 2026.
External trade. Bank Negara Malaysia reported in Monetary and Financial Developments in July 2026 that the trade surplus was RM22.5 billion in July 2026 compared with RM15.8 billion in June 2026 — a difference of RM6.7 billion on those two published monthly figures. Exports grew 38 percent, electrical and electronics exports grew 51 percent and semiconductor exports grew 69.8 percent, while imports grew 36.4 percent.
Credit. In the same release, private non-financial sector credit grew 6.5 percent, business loans grew 7.5 percent and household loans grew 5.3 percent.
Banking system. The aggregate liquidity coverage ratio of the banking system stood at 148.7 percent, gross impaired loans stood at 1.4 percent and net impaired loans at 1.0 percent, with loan loss coverage at 125 percent.
Markets, as the central bank recorded them. Bank Negara Malaysia observed that the ringgit depreciated 0.5 percent against the United States dollar in July 2026 and that the nominal effective exchange rate declined 1.2 percent. It also observed that the 10-year Malaysian Government Securities yield rose 10 basis points and that the FBM KLCI rose 3.7 percent in July 2026. Those are the central bank's own observations of the month, restated here with no reading added.
Every figure above is the published position for July 2026, except the policy rate, which is the level set on 3 September 2026. Nothing here states a value for August 2026 or later.