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KUALA LUMPUR - Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent today reflects its confidence in the Malaysian economy’s ability to sustain healthy growth in 2026, according to economists.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Monetary Policy Committee’s (MPC) decision to keep the OPR unchanged was in line with expectations among most economists.
He said the MPC’s tone was fairly balanced and positive macroeconomic conditions are expected to continue for the rest of the year.
"Hence, we believe the OPR is likely to be maintained at 2.75 per cent in the next MPC meeting in November,” he told Bernama.
Meanwhile, TA Securities Research economist Shazma Juliana Abu Bakar said BNM’s decision reflected its assessments that the current monetary policy stance remains supportive of price stability and sustainable growth.
Looking ahead, she said markets see risks tilted towards a 25 basis points hike in 2027, particularly if major central banks resume monetary tightening.
She said a modest increase in the OPR is not expected to materially affect private consumption, as household spending should remain supported by steady wage growth, a resilient labour market and targeted government assistance.
However, Shazma said the impact of higher borrowing costs could be felt more among interest-sensitive spending, particularly for housing and big-ticket purchases.
"The timing of any adjustment will remain data-dependent, particularly on the pace of US rate hikes and domestic inflation," she said, adding that inflation was expected to remain manageable at 2.1 per cent in 2026 and 1.7 per cent in 2027.
BNM kept the OPR unchanged at 2.75 per cent for the seventh consecutive Monetary Policy Committee meeting since the 25 basis points cut in July 2025.
The central bank said the latest indicators point to resilient global growth, supported by strong global tech expansion, improving supply conditions, and stable labour markets.
It said that although inflation has edged lower in recent months, it is expected to remain elevated given the lagged pass-through of energy costs to consumer prices.
BNM added that, going forward, while uncertainties surrounding the West Asia conflict will continue to weigh on global growth amid continued inflationary pressures, sustained tech-related spending is expected to cushion the impact. - BERNAMA
