BNM raises OPR to 3.25%, first hike in three-and-a-half years

PETALING JAYA: As expected, Bank Negara Malaysia (BNM) raised the Overnight Policy Rate (OPR) by 25 basis points to 3.25% from 3% at its Monetary Policy Committee (MPC) meeting today.
This is the first rate hike since July 10, 2014. The last action by the central bank was to cut it from 3.25% to 3% on July 13, 2016.
BNM said in a statement that with the OPR hike, the floor and ceiling rates of the corridor for the OPR are correspondingly raised to 3% and 3.50% respectively.
"With the economy firmly on a steady growth path, the MPC decided to normalise the degree of monetary accommodation. At the same time, the MPC recognises the need to pre-emptively ensure that the stance of monetary policy is appropriate to prevent the build-up of risks that could arise from interest rates being too low for a prolonged period of time."
BNM said at the current level of the OPR, the stance of monetary policy remains accommodative and the MPC will continue to assess the balance of risks surrounding the outlook for domestic growth and inflation.