KUALA LUMPUR: Bank Negara Malaysia (BNM) adopts a measured and gradual approach in managing the Overnight Policy Rate (OPR), ensuring that monetary policy adjustments are made only when necessary, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Speaking at the ASEAN Leadership Forum in Washington, DC on Friday, Amir emphasised that the OPR remains a powerful tool that must be wielded judiciously.
“BNM also raised rates, but it raised in a measured form along the way, and it hit a fairly accommodative rate of 3%, which was comfortable for businesses but also sent the right message,” Amir said during a question-and-answer session hosted by the Centre for Strategic and International Studies.
Following the historically low OPR of 1.75% during the Covid-19 pandemic, Malaysia’s central bank gradually increased rates to 3%, unlike other economies that resorted to aggressive monetary tightening to curb inflation.
Amir noted that headline inflation had eased from 1.8% in 2024 to 1.4% in March 2025, signalling that inflationary pressures are currently under control.
“The [OPR] rate is at 3% now. There’s no pressure for the government at this point in time on that,” he said. “If things get difficult, the tool is available to be reviewed, but we are not taking a pre-emptive decision today.”
BNM’s next Monetary Policy Committee (MPC) meeting is scheduled for May 8, 2025, where policymakers will reassess the OPR based on the latest economic conditions.
Malaysia’s cautious stance on monetary policy comes as part of a broader strategy to strengthen economic resilience amid ongoing global uncertainties.
