BNM Maintains OPR Unchanged At 2.75 Pct
KUALA LUMPUR, Sept 3 (Bernama) -- Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 2.75 per cent at its meeting today.
In a statement, the central bank said the latest indicators point to resilient global growth, supported by strong global tech expansion, improving supply conditions and stable labour markets.
It said inflation has edged lower in recent months but is expected to remain elevated given the lagged pass-through of energy costs to consumer prices.
“Going forward, while uncertainties surrounding the West Asia conflict will continue to weigh on global growth amid continued inflationary pressures, the impact is expected to be cushioned by sustained tech-related spending,” it said.
BNM said downside risks to global growth remain, stemming from prolonged geopolitical tensions, tighter global financial conditions, and concerns over valuations in financial markets, while upside potential includes stronger tech spending, a faster-than-expected recovery in supply chain conditions, and pro-growth policy measures in key economies.
At the current OPR level, the MPC considers the monetary policy stance to be consistent with the outlook of continued price stability and sustainable economic growth.
The MPC will remain vigilant to ongoing developments and assess the balance of risks surrounding the outlook for domestic inflation and growth.
BNM noted that the Malaysian economy expanded robustly by 5.7 per cent in the first half of 2026, despite the challenging global environment.
It said growth was driven by stronger-than-expected exports supported by sustained domestic demand.
“The solid growth momentum is expected to bring 2026 growth to around five per cent, and the economy’s sound fundamentals are expected to keep growth resilient in 2027.
“This will be driven by the external sector, which will be lifted by improved global prospects and robust demand for electrical and electronics (E&E) goods, as well as continued strength in tech-related non-E&E exports and sustained tourist spending,” it said.
The central bank said stable labour market conditions and ongoing investment activity will continue to support domestic demand.
It said that this growth outlook remains subject to downside risks from a prolonged conflict in West Asia and lower commodity production.
“Upside potential to growth could arise from better-than-expected global growth, stronger technology-related export demand and higher tourism activity,” it stated.
BNM said headline and core inflation in the first seven months of the year averaged 1.8 per cent and two per cent, respectively.
It said that despite elevated costs and strong economic growth, domestic policy measures and stable demand conditions have contained the pass-through to consumer prices, amid limited spillover of external sector strength to wages.
“Developments surrounding the West Asia conflict remain uncertain, as elevated global commodity prices continue to exert upward pressure on cost conditions.
“As these developments remain fluid, the MPC will remain vigilant to cost pressures and domestic demand conditions given their impact on the inflation outlook,” it added.
-- BERNAMA