Bank Negara Malaysia (BNM) today decided to keep the Overnight Policy Rate (OPR) at 3% in its latest Monetary Policy Committee (MPC) meeting, in line with market expectations.
The decision is aimed at maintaining economic growth while ensuring price stability as the country continues to recover from the global economic slowdown.
Malaysia's economy grew 5.1% in the first half of 2024, driven by resilient domestic spending and strong export performance.
BNM emphasized that exports are expected to gain further momentum, particularly due to Malaysia's leading role in the global semiconductor supply chain and increased demand for non-electrical and electronic (E&E) goods.
The tourism sector also contributed positively, with increased tourist arrivals and spending, further increasing household spending.
The central bank has cut OPR to a record low of 1.75% during the pandemic to support the economy.
Since then, it has raised rates gradually by 125 basis points cumulatively between May 2022 and May 2023.
At its current level of 3%, the OPR is still lower than the pre-pandemic rate of 3.25%.
Inflation averaged 1.8% in the first half of 2024 and is expected to remain stable, without any significant changes in domestic policy.
BNM's decision to keep OPR stable reflects its commitment to foster sustainable growth while closely monitoring inflation and global economic risks.
With global uncertainty and geopolitical tensions still looming, BNM will ensure its monetary policy remains supportive of Malaysia's economic outlook.
