Bank Negara Slashes OPR For Fourth Time In 2020, Now At 1.75%
Author Avatar

bank negara malaysia

Bank Negara Malaysia (BNM) has reduced the overnight policy rate (OPR) by 25 basis points to 1.75%. The ceiling and floor rates of the corridor of the OPR are lowered to 2.0% and 1.5% respectively.

This is the fourth time the central bank of Malaysia has lowered the OPR this year, following a 50-basis point slash in May, a 25-basis point cut in March, and the first cut from 3.0% to 2.75% earlier in January.

bnm bank negara malaysia

In its statement released today, BNM said that the impact of Covid-19 on the global economy is severe, with economic activity in Malaysia contracting sharply in the second quarter of the year. Following the gradual re-opening of the nation’s economy since early May, economic activities have begun to recover, supported by fiscal stimulus packages and monetary and financial measures. However, the pace and strength of the recovery remain subject to downside risks from both domestic and external factors.

“The reduction in the OPR provides additional policy stimulus to accelerate the pace of economic recovery,” Bank Negara said. “The MPC (Monetary Policy Committee) will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. The Bank will continue to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery.”

(Source: Bank Negara Malaysia)

4 5 votes
Article Rating


Comments (1)

Notify of
1 Comment
Inline Feedbacks
View all comments
Sun Swee Ching
1 year ago

But how does this translate into reality in our daily lives ? What s is stated is all financial jargon

Top Bank News Articles
Post Image
Malaysian Banks And Local Institutions Offer Financial Assistance For Customers Affected By Covid-19
Alex Cheong Pui Yin
- 1st April 2020
(Last update: 1 April 2020, 3.40pm to include FAQs by banks.) With Malaysia going into an extended period […]
Post Image
Loan Repayment Assistance Under PEMERKASA+ Is Available For Everyone
The RinggitPlus Team
- 15th June 2021
The latest spike in Covid-19 cases has led to the declaration of a third movement control order and […]
Post Image
Public Bank Extended Moratorium: Flexible Arrangements To Reduce Loan Instalments Until End-2021
Jacie Tan
- 7th August 2020
Public Bank has released the details of its Covid-19 assistance for those who will still be in financial […]
Post Image
Applications For PEMULIH Loan Moratorium Start Today – Here’s What You Need To Know
Alex Cheong Pui Yin
- 7th July 2021
On 28 June 2021, Prime Minister Tan Sri Muhyiddin Yassin announced that a second six-month loan moratorium will […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image