Bank Negara Malaysia Keeps OPR At 2.75%

Samuel Chua

4th September 2025 - 2 min read

Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 2.75% following its meeting on 4 September 2025. The central bank said this rate remains appropriate to support economic growth while keeping prices stable .

Global Economic Conditions

Recent indicators point to steady global growth, helped by resilient consumer spending and the conclusion of several trade negotiations. Positive labour market conditions, less restrictive monetary policy, and fiscal support are also expected to sustain momentum.

Risks to global growth remain, the impact of new tariff rates and geopolitical tensions could dampen activity and create volatility in financial markets and commodity prices. At the same time, favourable outcomes from ongoing trade talks and pro-growth measures in major economies could lift the outlook.

Malaysia’s Growth Outlook

The Malaysian economy expanded by 4.4% in the first half of 2025, and is projected to grow between 4% and 4.8% for the year. Growth will continue to be supported by resilient domestic demand, strong household spending, and investment in multi-year projects across both public and private sectors.

Ongoing initiatives under national master plans and the 13th Malaysia Plan (RMK13) are also expected to drive investment activity. Downside risks include weaker global trade, lower commodity production, and softer business or consumer sentiment. On the upside, robust demand for electrical and electronic goods and healthy tourism activity could provide additional support .

Inflation Remains Contained

Headline inflation averaged 1.4% in the first seven months of 2025, while core inflation averaged 1.9%. Bank Negara Malaysia expects both headline and core inflation to remain moderate in 2025 and 2026.

The easing of global commodity prices is expected to keep domestic cost pressures contained. Core inflation is likely to stay close to the long-term average, reflecting steady economic activity without excessive demand pressures .

Monetary Policy Going Forward

According to the MPC, it views the current OPR level as supportive of growth and consistent with stable prices. Bank Negara Malaysia will continue to monitor global and domestic developments closely and assess risks to both growth and inflation before adjusting its policy stance .

Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.

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