News about BNM

This marks the eleventh consecutive MPC meeting where the OPR was held at 3%, after a 25-basis-point increase from 2.

The central bank anticipates global growth to be sustained by positive labour market conditions, moderating inflation, and less restrictive monetary policies, with global trade to remain supported by the ongoing tech upcycle, although it flagged risks from uncertainties surrounding tariffs, major economies' policies, and geopolitical developments.

The cautious stance comes as the central bank on Wednesday decided during its first monetary policy meeting of the year to hold the benchmark rate steady at 3%, a move unanimously expected by the market.

“At the current OPR level, the monetary policy stance remains supportive of the economy, and is consistent with the current assessment of inflation and growth prospects,” BNM said.

“The Rule of 78 front-loads interest payments, meaning borrowers pay a larger portion of the total interest in the early stages of the loan.

The new proposal also requires FSPs to verify the actual purpose of the financing by requesting supporting documents from the financial consumer before treating additional financing as home financing.

The continued monetary policy stance is unlike other countries in the region, which have started to cut rates in recent weeks, noted London-based economic research firm Capital Economics.

BNM on Thursday announced that the overnight policy rate (OPR) will remain at 3% following the Monetary Policy Committee’s two-day meeting, which aligns with expectations from economists surveyed by Bloomberg.

“At the current OPR level, the monetary policy stance remains supportive of the economy, and is consistent with the current assessment of inflation and growth prospects,” BNM said.

“Going forward, exports are expected to be further lifted by the global tech upcycle given Malaysia’s position in the semiconductor supply chain, as well as continued strength in non-electrical and electronics goods.