KUALA LUMPUR: Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent for a sixth consecutive Monetary Policy Committee (MPC) meeting reflects growing confidence in the resilience of Malaysia’s domestic economy despite mounting global uncertainties, economists said.
The benchmark OPR has remained unchanged since July 2025, making it one of BNM’s longest policy pauses in recent years.
They said the prolonged pause indicates that current monetary settings remain supportive of growth while givng policymakers flexibility to respond to evolving external risks, including geopolitical tensions and global trade uncertainties.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said BNM’s earlier pre-emptive measures in July 2025 have provided sufficient policy stability under the current economic environment.
"Under the current environment where growth remains good, the need to lower the OPR is less urgent,” he told Bernama.
The central bank decided to maintain the OPR at 2.75 per cent at today’s third of six MPC meetings scheduled for 2026.
He said Malaysia’s growth momentum remains intact for now despite concerns over rising global oil prices and the prolonged conflict in West Asia.
However, Mohd Afzanizam noted that BNM would continue monitoring growth prospects closely, particularly in the second half of 2026, as external risks remain fluid.
"If growth is expected to slow further, then BNM may reduce the OPR again,” he added.
Meanwhile, CGS International Securities Malaysia head of economics Nazmi Idrus said the latest OPR decision was largely expected by the market and reflects BNM’s balanced approach between sustaining growth and managing inflationary pressures.
"I think today’s move is largely expected. Given the difficulty in foresight, not just in Malaysia but the rest of the world, investors are looking not only at OPR movements, but also at a country’s overall resilience when assessing the ringgit and their investments,” he said.
Nazmi said Malaysia remains relatively well-positioned compared with several regional economies as subsidy measures and stable fuel supply conditions continue to cushion inflationary pressures.
He added that the stable interest rate environment also provides greater visibility for businesses and investors in planning their spending and investment decisions amid continued global volatility. - Bernama
