tags - Sinar Daily

Gold prices fell to their lowest level in more than six months on Thursday. - Inset: Mohd Faisol

Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent on Thursday reinforced expectations that the central bank will likely hold the rate throughout 2026, although investment banks and research houses caution that prolonged geopolitical tensions and higher oil prices could still alter the inflation outlook.

Malaysia could be heading towards a double or even triple crisis if global economic pressures arising from ongoing conflicts are not handled effectively.

Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 2.75 per cent during its meeting today.

Malaysians should prepare for a year of mildly higher prices, especially in services and food-related categories, rather than a sudden spike in fuel or electricity costs. - Bernama photo for illustration purpose only

The ringgit last traded at a similar level on May 24, 2018, when it touched RM3.9797 against the greenback.

At the current OPR level, the MPC considers the monetary policy stance to be appropriate and supportive of the economy amid price stability, said the central bank.

In a statement today, the central bank said that at the current OPR level, the MPC considers the monetary policy stance to be appropriate and supportive of the economy amid price stability. 

BNM’s MPC is scheduled to announce its OPR decision tomorrow.

Domestic demand and confidence in households and firms have also subsided based on business sentiment indicators shown in the RAM Index and Purchasing Managers’ Index (PMI) due to uncertainty. - Photo: 123RF