BNM Expected to Hold OPR at 3.0%; Inflation Risk Remains Key Consideration

As the Bank Negara Malaysia (BNM) Monetary Policy Committee (MPC) meeting approaches, the market widely expects BNM to maintain the Overnight Policy Rate (OPR) at 3.0% for the fifth consecutive meeting. Economists note that despite the easing of headline inflation, core inflation remains sticky, and increased uncertainty in the global economic outlook supports the decision to hold rates steady. Furthermore, BNM will closely monitor the performance of the Ringgit against the US Dollar to ensure financial stability. The decision to keep the OPR unchanged aims to balance the need for economic growth with the necessity of containing inflation. Analysts anticipate the OPR will remain stable throughout the first half of 2026 unless there are significant shifts in the external environment or government subsidy policies.