Bank Negara maintains OPR at 2.75%

Bank Negara Malaysia has decided to keep its overnight policy rate (OPR) at 2.75%, according to its most recent monetary policy committee meeting. The central bank had last changed the OPR in July 2025, reducing the rate from 3% as a way to boost growth despite external challenges. In a statement, BNM said the present OPR was suitable and aligned with its expectations of continuous price stability and steady economic development.

It added that recent signs showed strong global growth, fueled by a surge in global tech, better supply situations, and a stable job market.

However, BNM acknowledged that uncertainties surrounding the conflict in the Middle East would keep affecting global growth, compounded by ongoing inflation issues. Yet, it predicted that this impact would be softened by ongoing tech-driven spending. BNM also noted that there are potential risks on the downside due to persistent geopolitical tensions, tighter global financial conditions, and worries about market valuations.

On the upside, it pointed to possible increased tech spending, a quicker-than-anticipated recovery in supply chain conditions, and pro-growth policies in major economies.

Given that these situations are still uncertain, BNM's Monetary Policy Committee will keep a close eye on inflation pressures and domestic demand conditions.