OPR Maintained at 2.75% for Eighth Consecutive Time
KUALA LUMPUR: Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 2.75 percent, marking the eighth consecutive time the rate has remained unchanged since July 2025.
The decision was made at BNM’s Monetary Policy Committee (MPC) meeting today.
In a statement, BNM said the Malaysian economy grew robustly by 5.7 percent in the first half of 2026, despite facing a challenging global environment.
According to the statement, the growth was driven by better-than-expected export performance as well as sustained domestic demand.
“The strong growth momentum is expected to result in growth for 2026 at around five percent, and the country’s sound economic fundamentals are expected to sustain growth resilience in 2027,” the statement said.
BNM explained that economic growth will continue to be supported by the external sector, following improved global growth prospects and sustained demand for electrical and electronics (E&E) goods and technology-related non-E&E exports.
It said continued tourist spending, stable labour market conditions, and sustained investment activities also support domestic demand.
Meanwhile, BNM said headline inflation and core inflation for the first seven months of this year averaged 1.8 percent and 2.0 percent respectively.
According to the central bank, although costs remain high and economic growth is strong, the pass-through to consumer prices has been contained by domestic policy measures and stable demand conditions.
“Developments related to the conflict in West Asia remain uncertain, as high global commodity prices continue to exert upward pressure on cost conditions,” the central bank added.
BNM added that the latest indicators show global growth remains resilient, supported by strong global technology expansion, improving supply conditions, and stable labour markets.
However, it said downside risks to global growth persist due to lingering geopolitical tensions, tighter global financial conditions, and concerns over valuations in financial markets.
At the same time, BNM said upside potential for global growth could be driven by stronger technology spending, a faster-than-expected recovery in supply chains, and growth-supportive policy measures in advanced economies.
“At the current OPR level, the MPC is of the view that the monetary policy stance is consistent with the prospects for sustained price stability and sustainable economic growth,” the statement said.
The MPC will continue to monitor current developments and assess the balance of risks to the inflation outlook and domestic growth.
Astro Awani