PUTRAJAYA: The decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) was made based on the controlled inflationary environment and Malaysia’s continued strong economic growth, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said that the situation allows the OPR to remain at its current level, thereby providing room for the business sector to continue growing with stable financing conditions.
“Bank Negara, through the Monetary Policy Committee (MPC), sees the inflation situation in the country as under control and GDP growth as remaining strong.
“So, it has taken the approach of maintaining the OPR. This gives businesses room to continue growing,” he said when met after attending the 2026 Finance Run here today.
Earlier this month, the MPC maintained the OPR at 2.75 per cent in its sixth and final meeting of the year.
Market analysts expect the OPR to be raised by 25 basis points to three per cent in the first quarter of 2027, driven by resilient economic growth and the central bank’s elevated inflation projections.
Meanwhile, Amir Hamzah said that the current economic situation in Malaysia differed from that in some countries facing high inflation pressures, overheating economies and supply chain disruptions.
He said that such pressures could cause central banks to use interest rates as an instrument to control the economic situation.
“We do not have problems like those we see in other countries, where inflationary pressures are high, there are issues arising from an overheated economy and supply chain issues that force central banks to use interest rates to control the situation,” he said.
He said that the comprehensive approach adopted by the Madani Government in managing the economy also helped Malaysia maintain a better economic condition.
“In Malaysia, I feel that because of the comprehensive approach taken by the Madani Government, we have a better situation here,” he said.
Amir Hamzah added that decisions related to the OPR remain under the jurisdiction of Bank Negara through the MPC process based on assessments of the current economic and inflation conditions.