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Bank Negara Malaysia keeps the policy rate at 2.75% into 2026

MUFG expects USD/MYR to stay broadly range-bound around 4.00 to 4.20 in the near term, citing domestic fundamentals as supportive.

Reported · Written up by our desk · Major Pairs

Bank Negara Malaysia held its Overnight Policy Rate at 2.75%, and MUFG expects the rate to remain on hold through 2026. In the view of MUFG’s Lloyd Chan, Malaysian domestic fundamentals are broadly supportive for the currency outlook.

MUFG said recent ringgit weakness has kept the Malaysian Ringgit below 4.15 versus the US Dollar, and it projects USD/MYR to trade in a near-term 4.00 to 4.20 range. The bank also maintained a neutral stance on Malaysian government securities.

FXStreet summarized the currency setup as range-bound, tied to the policy-path expectation that BNM will not change rates for an extended period. MUFG’s stance implies limited near-term catalysts for a directional move in USD/MYR while the OPR stays fixed.

The note also said MUFG is not calling for a change in its positioning in Malaysian government securities, reinforcing its neutral outlook as investors wait to see whether domestic conditions continue to support the ringgit.

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