KUALA LUMPUR – Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has opted to maintain the Overnight Policy Rate (OPR) at 2.75% following its latest meeting today.
The decision reflects a cautious “wait-and-see” approach as the central bank navigates a complex global landscape marked by regional conflicts and shifting economic momentum.
In an official statement, the central bank noted that the current OPR level remains supportive of the nation’s economic trajectory.
“The MPC considers the monetary policy stance appropriate and consistent with the outlook for continued price stability and sustainable economic growth. The MPC will remain vigilant to ongoing developments and assess the balance of risks surrounding the outlook for domestic inflation and growth,” said BNM.
Resilient Growth Amid External HeadwindsBNM highlighted that while the global economy showed resilience in the first quarter of 2026—driven by robust domestic demand and a booming global tech sector—new threats have emerged on the horizon.
The bank specifically pointed to the escalating West Asia conflict, which has triggered supply chain disruptions and a sharp spike in energy and commodity prices.
These factors are now beginning to dampen global growth momentum.Navigating Downside RisksThe central bank did not mince words regarding the fragility of the current global recovery, citing financial market instability and geopolitical friction as primary concerns.
“Downside risks to global growth remain elevated, stemming from the uncertainties surrounding the length and severity of the conflict, tighter global financial conditions and concerns over valuations in financial markets,” the statement read.
However, BNM also outlined a path for potential recovery, noting that: “Upside potential includes de-escalation of the conflict leading to improving supply chain conditions, stronger tech spending and pro-growth policy measures in key economies.”
By maintaining the OPR at 2.75 per cent, BNM aims to provide a stable foundation for the Malaysian ringgit and domestic consumption while keeping a close eye on the volatile external environment. – May 7, 2026