BNM retains OPR at 2.75%

As expected, Bank Negara Malaysia (BNM) opted to maintain the overnight policy rate (OPR) at 2.75% after concluding its monetary policy committee meeting today.

BNM had lowered its rate from three percent at its previous policy review in July.

It said that the current rate is appropriate and supportive of the economy amid price stability.

The central bank said the latest indicators pointed towards a continued expansion in global growth.

And while the impact of higher tariffs would continue to weigh on global growth, the outlook remained supported by resilient labour market conditions, moderating inflation, less restrictive monetary policy and supportive fiscal policy, it said.

“The conclusion of more trade negotiations has, to some extent, eased global uncertainty.

“Downside risks remain, arising from potentially higher tariffs, especially product-specific ones, and escalation in geopolitical tensions.”