BNM keeps OPR at 2.75% amid global uncertainties

KUALA LUMPUR (March 5): Bank Negara Malaysia (BNM) has kept its benchmark overnight policy rate (OPR) unchanged at 2.75% on Thursday, in line with expectations.

It said in its second monetary policy statement of the year that the current stance remains appropriate and supportive of economic growth and price stability, despite rising global uncertainty linked to geopolitical tensions.

The central bank's monetary policy committee (MPC) said global growth is expected to continue, supported by sustained domestic demand, moderating inflation, robust technology investments and supportive fiscal and monetary policies.

However, it noted that the recent conflict in the Middle East has raised uncertainty in the global economy, with the impact depending on the duration and severity of the conflict.

The central bank said downside risks to the global outlook include further escalation in geopolitical tensions, heightened volatility in global financial markets, concerns over potentially higher tariffs, and elevated asset valuations.

Malaysia’s economy expanded 5.2% in 2025, supported by strong domestic demand, higher electrical and electronics (E&E) exports, and robust inbound tourism, according to the statement.

The growth momentum is expected to continue in 2026, anchored by resilient domestic demand and supported by employment and wage growth as well as policy measures that sustain household spending.

Investment activity will also be driven by the progress of multi-year projects in both the private and public sectors, implementation of new smaller-scale public projects, continued realisation of approved investments, and the rollout of national master plans.

Headline inflation and core inflation stood at 1.6% and 2.3% respectively in January 2026, with the central bank expecting overall inflation to remain moderate this year.

BNM said core inflation is expected to stay stable and close to its long-term average, reflecting continued economic expansion and the absence of excessive demand pressures.

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