BNM Maintains OPR At 2.75 Pct

KUALA LUMPUR, Nov 6 (Bernama) -- Bank Negara Malaysia (BNM) maintains the overnight policy rate (OPR) at 2.75 per cent at its final Monetary Policy Committee (MPC) meeting for 2025. 

In a statement today, the central bank said that at the current OPR level, the MPC considers the monetary policy stance to be appropriate and supportive of the economy amid price stability. 

“The MPC will continue to monitor ongoing developments and assess the balance of risks surrounding the outlook for domestic growth and inflation,” it announced.

BNM said that the latest developments indicated better-than-expected growth in the third quarter for the Malaysian economy, driven by sustained domestic demand, resilient electrical and electronics (E&E) exports, and recovery in commodity production. 

The central bank said that looking ahead, resilient domestic demand will continue to support growth going into 2026, while employment, wage growth and income-related policy measures will remain supportive of household spending, it added. 

Meanwhile, BNM said the expansion in investment activity will be driven by the progress of multi-year projects in both the private and public sectors, the continued high realisation of approved investments, as well as the ongoing implementation of catalytic initiatives under national master plans and the 13th Malaysia Plan. 

“Measures under Budget 2026 will also support growth.  This growth outlook remains subject to uncertainties, in particular surrounding global developments. Downside risks to the growth outlook remain from slower global trade, weaker sentiment, as well as lower-than-expected commodity production.

“However, upside potential to growth could arise from a better global growth outlook, stronger demand for E&E goods, and robust tourism activity,” it said.

BNM said that the latest indicators point towards a continued expansion in global growth.

“While the impact of higher tariffs would continue to weigh on global growth, the outlook remains supported by resilient labour market conditions, moderating inflation, less restrictive monetary policy and supportive fiscal policy.  The conclusion of more trade negotiations has, to some extent, eased global uncertainty,” it said. 

BNM said the downside risks remained, arising from potentially higher tariffs, especially product-specific ones, and escalation in geopolitical tensions. 

Additionally, the central bank also noted concerns over the elevated valuations in financial markets. 

It said upside potential includes a milder tariff impact on economic activity and pro-growth policies in major economies.

Moving forward, BNM said Malaysia’s headline inflation is expected to remain moderate in 2026 amid the continued easing in global cost conditions. 

Year-to-date, headline and core inflation averaged 1.4 per cent and 1.9 per cent, respectively. 

“Global commodity prices are expected to remain modest, contributing to contained domestic cost conditions.  Meanwhile, core inflation in 2026 is expected to remain stable and close to its long-term average, reflecting continued expansion in economic activity and the absence of excessive demand pressures. 

“In this environment, the overall impact of the implemented domestic policy reforms on inflation in 2026 is expected to be limited,” it added. 

-- BERNAMA