Monetary and Financial Developments in June 2026

Imported from official source

Announcement

null Monetary and Financial Developments in June 2026

Monetary and Financial Developments in June 2026

Headline and core inflation moderated slightly in June

  • Both headline and core[1] inflation moderated slightly to 1.9% (May 2026: 2%), reflecting easing external cost pressures and lower inflation across several core items.
  • The moderation in headline inflation was largely driven by lower retail fuel inflation, particularly for RON97 and diesel[2].
  • Lower core inflation also contributed to the decline, mainly reflecting base effects from the increase in streaming services inflation in June 2025, alongside lower inflation for jewellery and watches amid softer global gold prices.
  • Retail trade growth offset by wholesale trade moderation and lower motor vehicle sales

  • The Index of Wholesale and Retail Trade (IOWRT) moderated to 3.1% in May 2026 (April 2026: 6.2%). 
  • Growth in retail (4.4%; April 2026: 3.9%) segment improved driven mainly by retail trade in non-specialised stores[3] and retail sale of automotive fuel in specialised stores.[4]
  • However, this was more than offset by moderating wholesale trade and decline in motor vehicle segment. This was mainly contributed by slower growth for other specialised wholesale,[5] wholesale of household goods and lower sales of motor vehicles.
  • Sustained growth in credit to the private non-financial sector

  • Credit to the private non-financial sector remained stable at 6.4% (May 2026: 6.4%), reflecting sustained growth in both outstanding loans (6%; May 2026: 6%) and corporate bonds (8.1%; May 2026: 8%).
  • Business loan growth continued its upward trend (7.2%; May 2026: 7%), driven mainly by loans to non-SMEs, particularly for working capital purposes.
  • Outstanding household loans grew by 5.3% (May 2026: 5.5%) amid some moderation in the growth of personal use loans.
  • Gross and net impaired loans ratios remained broadly unchanged at 1.4% and 1%, respectively.
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    Bank Negara Malaysia — imported from official source
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    https://www.bnm.gov.my/press-release-2026/-/asset_publisher/ZkJrPGjQLX7H/rss ATOM
    Imported
    October 03, 2026 20:42
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