THE recent decision by Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75% is a strategic shift in monetary policy aimed at revitalising domestic demand and supporting Malaysia’s economic recovery amid global uncertainties.
The first rate cut since 2023, this move is expected to have a ripple effect across the loan and property markets while also stimulating broader economic activity. Lowering the OPR directly reduces the cost of borrowing for both individuals and businesses.
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