Bank Negara surprises with OPR hike to 3%

PETALING JAYA: In a surprising move, Bank Negara has increased its Overnight Policy Rate (OPR) by 25 basis points to 3%, amid expectations that it would be maintained at 2.75%.

While acknowledging that headline and core inflation are expected to moderate within 2.8% to 3.8%, the central bank said core inflation would remain at elevated levels amid firm demand conditions.