Bank Negara has increased the Overnight Policy Rate by 25 basis points to 2.75 percent

BREAKING: Bank Negara has increased the Overnight Policy Rate by 25 basis points to 2.75 percent.

The ceiling and floor rates of the corridor of the OPR are correspondingly increased to 3.0 percent and 2.5 percent, respectively.

BNM says the hike is against the backdrop of continued positive growth prospects for the Malaysian economy. 

However, it adds that it is not on a ‘pre-set course’, and that monetary policy decisions will continue to depend on evolving conditions.

 “The adjustment would also pre-emptively manage the risk of excessive demand on price pressures consistent with the recalibration of monetary policy settings,” BNM says.

This increase brings the OPR closer to the pre-pandemic level of 3%.