BNM Maintains OPR at 2.75%

KUALA LUMPUR, — Bank Negara Malaysia (BNM) has decided to maintain the Overnight Policy Rate (OPR) at 2.75%, keeping monetary policy accommodative to support domestic growth amid global economic uncertainties.

Policy Decision

In a statement released after its Monetary Policy Committee (MPC) meeting, the central bank said the current level of the OPR remains appropriate to balance inflationary pressures and economic growth momentum.

“The Malaysian economy continues to expand, supported by resilient domestic demand and recovery in key sectors. While headline inflation has moderated, core inflation remains elevated, requiring continued vigilance,” BNM noted.

Economic Outlook

BNM highlighted that the global economy is slowing as tighter monetary policies in major economies weigh on growth. However, Malaysia’s economy remains resilient, anchored by strong labour market conditions, sustained private consumption, and robust investment activity.

The central bank also acknowledged downside risks from slower global trade, geopolitical tensions, and volatility in commodity prices.

Inflation Trends

Malaysia’s headline inflation is projected to average between 2.5% and 3.0% in 2025, while core inflation may stay slightly above the long-term trend. The central bank stressed that it remains ready to act should there be risks of persistent inflationary pressures.

Market Reaction

The ringgit was little changed against the US dollar following the announcement, while Bursa Malaysia traded steady as investors welcomed the continuity in monetary policy.

“BNM’s decision provides stability and signals that growth support remains a priority while ensuring price stability in the medium term,” said Dr. Elaine Wong, IFCCI Chief Market Strategist.

Looking Ahead

Economists believe the central bank is likely to keep the OPR unchanged for the near term, with adjustments depending on US Federal Reserve policy decisions and Malaysia’s inflation trajectory.