OPR held steady to allow businesses to continue growing: Amir Hamzah
PUTRAJAYA: The decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) was made based on the controlled inflationary environment and Malaysia’s continued strong economic growth, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
The Bank Negara Malaysia maintained the overnight policy rate (OPR) as Finance Minister II Datuk Seri Amir Hamzah Azizan explained, citing a controlled inflation environment and continuing strong economic growth. This decision provides stability for businesses to expand with favorable financing conditions, Hamzah said. Bank Negara's Monetary Policy Committee (MPC) assessed the inflation situation as manageable and Malaysia's GDP growth as robust, leading to the OPR remaining unchanged at 2.75 per cent.
The MPC had recently approved this stance during their final meeting of the year. Analysts anticipate a potential increase to 3 per cent in the first quarter of 2027, driven by sustained economic momentum and the central bank's projected inflation levels. Hamzah contrasted Malaysia's economic landscape to countries grappling with high inflation, overheating, and supply chain disruptions, stating that such pressures typically prompt central banks to adjust interest rates to maintain control.
He emphasized that Malaysia's comprehensive Madani Government approach to economic management has contributed to the country's favorable economic conditions.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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