BNM Reduces Overnight Policy Rate Again, From 2.75% To 2.50%
Author Avatar
bank negara malaysia

(Image: The Star)

Bank Negara Malaysia (BNM) has announced another overnight policy rate (OPR) cut by 25 basis points, bringing the current OPR from 2.75% to 2.50%. The ceiling and floor rates of the OPR are now reduced to 2.75% and 2.25%, respectively.

According to BNM, this cut is meant as a countermeasure for the economic impact of the Covid-19 outbreak. Malaysia’s economy has seen a dip due to the ongoing outbreak, causing disruptions in production and travel activities. This further led to tighter financial conditions and a volatile market.

As such, the OPR reduction is intended to provide a more accommodating financial environment for businesses and the nation in general. This, along with the 2020 Economic Stimulus Package recently introduced, is expected to encourage and support the country’s future economic growth amid price stability.

bank negara malaysia

(Image: Malay Mail)

The OPR is essentially the reference rate that banks use to decide on the interest rate of your savings and loans products. A lower OPR is good news for variable-rate loans, such as home loans. However, it may be less advantageous for your savings accounts and fixed deposits as it means these savings products will have a lower interest rate earning.

This is the second OPR cut in the last three months this year, with many economic analysts having predicted it prior. The Monetary Policy Committee (MPC) had announced an earlier cut in January 2020, where the OPR was reduced from 3.00% to 2.75%.

5 1 vote
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
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
CIMB: Touch ‘n Go eWallet Sees Healthy Volumes For Essential Services And Online Transactions
Alex Cheong Pui Yin
- 13th April 2020
CIMB Group Holdings Bhd, which owns Touch’n Go Sdn Bhd (TNGSB), has reported a continuation of healthy volumes […]
Post Image
Operating Hours For CIMB Branches Are Now Back To Normal
Alex Cheong Pui Yin
- 7th January 2021
CIMB has announced that the banking hours for its branches and Preferred Centres across the country have now […]
Post Image
Loan Repayment Assistance Under PEMERKASA+ Is Available For Everyone
- 15th June 2021
The latest spike in Covid-19 cases has led to the declaration of a third movement control order and […]

Related articles

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