Washington: Finance Minister II Datuk Seri Amir Hamzah emphasized that Bank Negara Malaysia (BNM) employs a measured approach to managing the Overnight Policy Rate (OPR), highlighting it as a significant policy tool to be utilized only when necessary.

According to BERNAMA News Agency, Amir Hamzah, speaking at the ASEAN Leadership Forum in Washington, DC, elaborated that Malaysia’s central bank has maintained a careful and gradual strategy in adjusting the OPR. This contrasts with other nations that have opted for more aggressive rate hikes to combat inflation. During the COVID-19 pandemic, the OPR was at a historically low 1.75 percent. The recent adjustments have resulted in a current rate of 3 percent, which Amir Hamzah described as accommodating for businesses while also conveying the appropriate economic signals.

He further noted the decline in headline inflation from 1.8 percent last year to 1.4 percent in March this year, suggesting that inflationary pressures are being effectively managed. Amir Hamzah reassured that there is currently no governmental pressure to alter the rate.

Amir Hamzah also addressed questions regarding Malaysia’s strategies to handle future economic uncertainties and potential market volatility. He affirmed that while the OPR remains a viable tool, there is no immediate need for preemptive action.

The upcoming third Monetary Policy Committee meeting of BNM is set for May 8, 2025, where further discussions on the OPR will take place.