BNM cuts OPR by 25 basis points to 2.75%

Bank Negara Malaysia (BNM) has reduced the overnight policy rate (OPR) by 25 basis points to 2.75%, the first time it has fallen below 3% since March 2023, as a preemptive measure to sustain Malaysia’s economic growth amid moderate inflation. The decision follows the monetary policy committee’s meeting, with BNM noting strong domestic demand and export growth driving Malaysia’s economy in Q2. However, global uncertainties, including tariff developments and geopolitical tensions, pose risks to growth. BNM expects continued support from household spending, investment in multi-year projects, and favorable trade outcomes, particularly in electrical and electronic goods and tourism.

BNM cuts OPR

Top Quote: “The reduction in the OPR is therefore a preemptive measure aimed at preserving Malaysia’s steady growth path amid moderate inflation prospects.”

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