Bank Negara Malaysia maintains OPR at 2.75pct amid global uncertainties

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By DayakDaily Team

KUCHING, March 5: Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 2.75 per cent following the conclusion of its Monetary Policy Committee (MPC) meeting today.

In a statement issued after its meeting, the central bank said global growth is expected to continue in 2026, supported by sustained domestic demand, moderating inflation, strong technology investments, and accommodative fiscal and monetary policies.

“However, the recent conflict in the Middle East has raised uncertainty in the global economy. The impact on the global economy will depend on the length and severity of the conflict.

“In light of recent developments, downside risks have risen, arising from further escalation in geopolitical tensions and heightened volatility in global financial markets,” it said.

The bank further said concerns remain over the possibility of higher tariffs and elevated financial market valuations. On the upside, stronger technology spending, milder tariff impacts, and pro-growth policies in major economies could support global expansion.

BNM noted that the Malaysian economy grew 5.2 per cent in 2025, driven by strong domestic demand, higher electrical and electronics (E&E) exports, and robust inbound tourism.

This growth momentum is expected to continue in 2026, supported by household spending, employment and wage growth, and ongoing multi-year public and private investment projects.

Exports, particularly in E&E goods, and tourist spending are expected to remain strong, while headline and core inflation are projected to stay moderate at 1.6 per cent and 2.3 per cent respectively in January 2026.

At the current OPR level, the central bank considers monetary policy to be appropriate and supportive of the economy amid price stability.

“The MPC will continue to monitor ongoing developments and assess the balance of risks surrounding the outlook for domestic growth and inflation,” it added. — DayakDaily

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