Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 3.0 percent at the third Monetary Policy Committee (MPC) in 2025.
Latest indicators point to continued global growth and trade, supported by domestic demand and activities undertaken earlier.
The global growth outlook will continue to be supported by positive labor market conditions, less tight monetary policy and fiscal stimulus.
However, tariff measures announced by the United States (US) and retaliatory measures have weakened the outlook for global growth and trade.
According to the central bank, this outlook remains subject to significant uncertainties, including the outcome of trade negotiations and geopolitical tensions, and could lead to more significant global financial market volatility.
BNM said headline inflation and core inflation averaged 1.5 percent and 1.9 percent, respectively, in the first quarter of this year.
Overall, inflation this year is expected to remain contained given the moderate global cost environment and the absence of excessive domestic demand pressures.
Malaysia’s favourable economic outlook and domestic structural reforms, together with ongoing initiatives to encourage fund flows, will continue to provide ongoing support to the ringgit.
At the current OPR level, the stance of monetary policy is consistent with the current assessment of the inflation and growth outlook. – Utusan Malaysia
