Bank Negara holds OPR steady at 2.75% amid solid growth and contained inflation

Bank Negara Malaysia kept the overnight policy rate (OPR) at 2.75 per cent on Tuesday, signalling confidence in the domestic economy's ability to sustain growth while managing price pressures. The decision reflects the central bank's assessment that inflation remains contained and the economic outlook stays robust, reducing the need for immediate adjustments to monetary policy.

Governor Rasheed Masood said the central bank would remain vigilant against upside inflation risks, particularly those stemming from geopolitical tensions in West Asia. The prolonged conflict in the region poses potential threats to global oil prices and supply chains, which could eventually feed through to Malaysian inflation, the governor cautioned.

"Economic activity continues to expand at a resilient pace, supported by steady domestic demand and ongoing structural improvements," Rasheed said in a statement following the monetary policy committee's decision. The central bank noted that current monetary conditions remain appropriately calibrated to support growth while maintaining price stability.

The decision to hold rates steady comes as Malaysia navigates evolving global economic conditions, including persistent external uncertainties. Bank Negara said it would continue to assess economic data and adjust policy as needed, while emphasising its commitment to supporting sustainable growth and financial stability in the medium term.