Bank Negara maintains OPR at 2.75% after Sept 2026 meeting – hire purchase rates likely to stay unchanged

For the fifth time this year, Bank Negara Malaysia (BNM) has maintained the overnight policy rate (OPR) at 2.75%. This was announced following its monetary police committee (MPC) meeting on September 3, 2026, with the central bank saying it considers the rate to consistent with the outlook of continued price stability and sustainable economic growth.

The OPR at 2.75% has been in place since July 9, 2025, nearly 14 months ago, when it was reduced by 25 basis points from 3% then. This month’s MPC meeting is the penultimate for 2026, with the final one set to take place on November 5, 2026.

Bank loans are affected by the OPR, with a lower rate making money less expensive to borrow and vice versa. With the OPR staying at 2.75%, borrowers are likely to enjoy largely unchanged financing rates for car loans (hire purchase typically). The lowest the OPR has been was during the Covid-19 pandemic when it dropped to 1.75% on July 7, 2020 and remained that way until May 11, 2022.

According to the central bank, Malaysia’s economy expanded by 5.7% in the first half of 2026. This is despite a challenging global environment, with growth being driven by strong exports and sustained domestic demand. It added that headline and core inflation in the first seven months of the year averaged 1.8% and 2% respectively

Here is BNM’s full statement:

Monetary Policy Statement September 2026

At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 2.75%.

The latest indicators point to resilient global growth, supported by strong global tech expansion, improving supply conditions and stable labour markets. Inflation has edged lower in recent months but is expected to remain elevated given the lagged pass-through of energy costs to consumer prices. Going forward, while uncertainties surrounding the Middle East conflict will continue to weigh on global growth amid continued inflationary pressures, the impact is expected to be cushioned by sustained tech-related spending. Downside risks to global growth remain, stemming from prolonged geopolitical tensions, tighter global financial conditions and concerns over valuations in financial markets. Upside potential includes stronger tech spending, faster-than-expected recovery in supply chain conditions and pro-growth policy measures in key economies.

The Malaysian economy expanded robustly by 5.7% in the first half of 2026, despite the challenging global environment. Growth was driven by stronger-than-expected export performance amid sustained domestic demand. The solid growth momentum is expected to bring 2026 growth to around 5%, and the economy’s sound fundamentals are expected to keep growth resilient in 2027. This will be driven by the external sector, which will be lifted by improved global prospects and robust demand for electrical and electronics (E&E) goods, as well as continued strength in tech-related non-E&E exports and sustained tourist spending. Stable labour market conditions and ongoing investment activity will remain supportive of domestic demand. This growth outlook remains subject to downside risks from a prolonged conflict in the Middle East and lower commodity production. Upside potential to growth could arise from better-than-expected global growth, stronger technology-related export demand and higher tourism activity.

Headline and core inflation in the first seven months of the year averaged 1.8% and 2% respectively. Despite elevated costs and strong economic growth, the pass-through to consumer prices has been contained by domestic policy measures and stable demand conditions amid limited spillover of external sector strength to wages. Developments surrounding the Middle East conflict remain uncertain, as elevated global commodity prices continue to exert upward pressure on cost conditions. As these developments remain fluid, the MPC will remain vigilant to cost pressures and domestic demand conditions given their impact on the inflation outlook.

At the current OPR level, the MPC considers the monetary policy stance to be consistent with the outlook of continued price stability and sustainable economic growth. The MPC will remain vigilant to ongoing developments and assess the balance of risks surrounding the outlook for domestic inflation and growth.