Bank Negara Malaysia reduced its overnight policy rate by 25 basis points to 2.75% at its July 2025 Monetary Policy Committee meeting, executing the country's first rate cut since July 2020. The central bank described the move as a pre-emptive measure aimed at preserving Malaysia's steady growth path amid moderate inflation prospects, citing uncertainty over tariff developments.
Bank Negara raised the OPR from 1.75% to 3.00% between May 2022 and May 2023 before holding it there for two years.
Bank Negara said it remained committed to ensuring that monetary policy supports sustainable growth while maintaining price stability.
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