BENGALURU: Bank Negara Malaysia (BNM) will keep its key policy rate unchanged at 3.00% for the 10th consecutive meeting on Wednesday and maintain it there throughout this year as economic growth remains strong and inflation stays under control, a Reuters poll found.

While Malaysia's economy is expected to post strong growth of 5.1% last year, inflation - 1.8% in November - has remained largely subdued, suggesting BNM will be in no rush to cut rates as it aims to avoid further weakening of the ringgit MYR=.

The currency has depreciated about 2.3% since Donald Trump's victory in the U.S. presidential election in November.

All 30 economists in the Jan. 10-17 Reuters poll predicted BNM would leave its overnight policy rate MYINTR=ECI at 3.00% on Jan. 22 and maintain it there throughout the year, a view unchanged for over a year.

This contrasts with other central banks in the region - Bank Indonesia, the Bank of Thailand, the Philippine central bank and the Bank of Korea - which began their easing cycles in 2024.

"The strength in the economy, exceeding its growth target in 2024 means, BNM is in no hurry to cut rates to support growth, and inflation is well under control, meaning there is no need to increase rates too," said Heron Lim, an economist at Moody's Analytics.

While BNM does not have a currency mandate, its November policy statement indicated a more cautious approach due to the possibility of increased volatility in the ringgit, driven by a stronger dollar and heavier tariffs under Trump.

The central bank's outlook aligns with poll results, which suggest it will avoid easing this year to prevent the currency from weakening further.

"The slower easing cycle from the U.S. Fed means, BNM will have to weigh the strength of the currency, but it will likely need to wait for more clarity from the U.S. Fed before it acts," Lim added.

Median forecasts showed economic growth in Malaysia would average 4.7% in 2025 and 4.6% in 2026, while inflation will average 2.4% in 2025 and 2026, broadly unchanged from the last poll.

Even though inflation trended lower in 2024 and growth remained stable, the central bank said in its November statement it would remain vigilant about domestic inflation and growth trajectories going into 2025.

"We think economic growth will soften further. But with inflation set to rise on the back of subsidy cuts, the central bank will keep interest rates unchanged for the foreseeable future," wrote Gareth Leather, senior Asia economist at Capital Economics.