OPR Cut Can Address Household Debt Service Ratio, Provides Reprieve In Disposable Income -- GX Bank
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, July 14 (Bernama) -- GX Bank Bhd said the overnight policy rate (OPR) cut to 2.75 per cent from three per cent could potentially address the household debt service ratio while providing a reprieve in disposable income.
Chief executive officer Kaushik Chowdhury said this could in turn alleviate concerns about rising living costs.
"Bank Negara Malaysia’s (BNM) decision to adjust the OPR to 2.75 per cent is strategic and timely, carefully calculated to balance the needs of Malaysians against the potential impact of the current global and political economic climate.
"This demonstrates a commitment to ensuring Malaysia's economy is steady, resilient, and sustainable," he told Bernama here today.
According to Chowdhury, safeguarding Malaysia's financial resilience is a shared responsibility, and as a digital bank, GX Bank is ideally positioned and committed to assisting Malaysians in this regard.
"Encouraging prudent saving and strategic spending is the cornerstone of a financially empowered nation," he said.
Meanwhile, Maybank Investment Bank Bhd said in a research note today that the monetary easing will help cushion the tariff shock impact.
It said short-term rates across ASEAN have fallen despite the Federal Reserve holding rates steady so far this year.
Short-term interest rates have fallen especially sharply in Singapore (-110bps) on safe haven inflows.
"ASEAN central banks have been cutting policy rates since the start of 2025, including in Indonesia (-50bps), Thailand (-50bps), the Philippines (-50bps) and Malaysia (-25bps)," it added.
On July 9, 2025, BNM reduced the OPR by 25 basis points (bps) to 2.75 per cent.
The central bank last kept the OPR at 2.75 per cent in March 2023. It rose to three per cent in May 2023.
BNM governor Datuk Seri Abdul Rasheed Ghaffour explained in a July 9, 2025 email with Bernama that the OPR cut was a pre-emptive move to preserve and secure the country's steady growth path, taking into account trade uncertainties and geopolitical development risks that could affect Malaysia’s economic outlook.
-- BERNAMA