Bank Negara Malaysia is expected to end 2025 with the Overnight Policy Rate (OPR) unchanged at 2.75 per cent, reflecting confidence in the domestic economy despite lingering global uncertainties.
Economists anticipate that today’s final Monetary Policy Committee (MPC) meeting for 2025 will see policymakers maintain the current rate, citing supportive conditions for growth while preserving flexibility for 2026.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that Malaysia’s economy remains resilient, backed by a 5.2 per cent advance GDP growth in Q3 2025, up from 4.4 per cent in the first half of the year. He said the July 2025 OPR cut of 25 basis points already provided sufficient stimulus, and the current real interest rate of 1.35 per cent leaves room for future easing if needed.
Dr Aimi Zulhazmi Abdul Rashid of UniKL Business School highlighted the strong performance in services and manufacturing sectors, adding that Malaysia’s monetary position remains healthy. “While a rate cut may be possible in 2026 if global demand weakens, domestic momentum and stability support keeping the OPR unchanged,” she said, noting that the recent Agreement on Reciprocal Tariffs (ART) with the US strengthens investor confidence.
Economist Dr Geoffrey Williams said the decision to maintain the OPR is appropriate, as inflation remains below historical averages, economic growth is on track, and financial stability is intact. He added that a lower rate could unnecessarily increase living costs, while the stable ringgit and balanced policy framework reflect confidence in Malaysia’s fundamentals.
Bank Negara last adjusted the OPR in July 2025, reducing it to 2.75 per cent. The MPC, chaired by Governor Datuk Seri Abdul Rasheed Ghaffour, meets six times a year, with today’s meeting marking the final review of 2025 and setting the stage for 2026’s monetary policy.
