BNM Holds OPR at 2.75% at Final MPC Meeting of 2026
The central bank paused for an eighth consecutive meeting; floating-rate home loan instalments stay put and fixed car loans never move.
What happened1/5 BNM keeps OPR at 2.75% for eighth straight review
2.75%OPR held unchanged17 of 23economists predicted the hold8thconsecutive hold since July 2025On 5 November 2026, Bank Negara Malaysia held the Overnight Policy Rate at 2.75% after its last Monetary Policy Committee meeting of the year. The previous rate change was a 25-basis-point cut in July 2025.
Seventeen of 23 economists polled by Bloomberg expected the hold. Six had called for a 25bp increase. BNM said the current stance remains consistent with its outlook for price stability and sustainable growth.
The real numbers2/5 Inflation under 2%, economy grew 5.3% in Q3
BNM reported headline inflation averaged 1.8% and core inflation 1.9% year-to-date. Subsidies and price controls kept consumer prices contained.
The economy expanded 5.3% year-on-year in Q3 2026, lifted by electronics exports riding the global AI boom. Full-year 2026 growth is expected above 5%.
Indicator Figure Source period Headline inflation (YTD) 1.8% Jan–Oct 2026 Core inflation (YTD) 1.9% Jan–Oct 2026 GDP growth Q3 2026 5.3% YoY BNM statement Full-year 2026 growth Above 5% BNM projection - 01/03
BNM keeps OPR at 2.75% for eighth straight review ✓OPR held unchanged 2.75% OPR held unchanged
How it affects your wallet3/5 Your home loan instalment does not move this cycle
A floating-rate home loan tracks the banks' base rate, which follows the OPR. No OPR change means no instalment change for this cycle.
Most hire-purchase car loans are fixed for the entire tenure. OPR decisions never affect them, whether BNM hikes, cuts or holds.
e.g. If your RM400,000 home loan is pegged to SBR + 1.0%, your monthly instalment stays the same as last month. Check your bank's latest base rate on your statement to confirm your exact figure.
- Floating home loans: instalment unchanged this month
- Fixed car loans: never affected by OPR moves
- Savings accounts and FD rates: set by each bank, not directly by the OPR
Why it matters4/5 Why BNM stayed put despite 2027 inflation risks
BNM cited continued resilience in global growth, strong technology investment and stable labour markets as reasons the current stance still fits. Inflation stayed under 2% thanks to domestic subsidies and price controls.
The central bank flagged upward pressure in 2027 from geopolitical tensions, elevated commodity prices and adverse weather, but expects inflation to remain contained amid stable demand. Budget 2027 measures are expected to add impetus to private consumption.
Downside risks include a prolonged Middle East conflict and lower commodity production. Upside potential comes from stronger tech spending and a faster supply-chain recovery.
- 02/03
17 of 23 economists predicted the hold BNM keeps OPR at 2.75% for eighth straight review economists predicted the hold
What to watch5/5 Next MPC review falls in 2027; inflation expected to edge higher
The 2026 MPC schedule is done. The next scheduled review falls in 2027; BNM said it will remain vigilant to cost pressures and domestic demand conditions.
BNM expects both headline and core inflation to rise in 2027, though likely staying contained. The external sector, especially electronics exports and tourist spending, remains the main growth driver.
- 03/03
Monthly statement Inflation under 2%, economy grew 5.3% in Q3 Headline inflation (YTD) Jan–Oct 2026 Core inflation (YTD) Jan–Oct 2026 GDP growth Q3 2026 BNM statement Full-year 2026 growth BNM projection
Questions people ask
Does the OPR decision affect my car loan instalment?
No. Most hire-purchase car loans in Malaysia carry a fixed interest rate for the entire tenure. The OPR decision has no effect on your monthly car loan payment, whether BNM hikes, cuts or holds.
Will BNM change the OPR in 2027?
BNM did not signal a specific direction. It said it will assess evolving conditions and the balance of risks for inflation and growth. The next scheduled MPC review falls in 2027.
Source: Ministry of FinanceThe Edge MalaysiaMalay Mail
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