National Bank announced another 25 basis point rate increase on July 6, with the latest Overnight Policy Rate (OPR) at 2.00%. This is the second overnight policy rate increase by the National Bank within this year.
During the outbreak in 2020, Bank Negara lowered the overnight policy rate (OPR) four times in one year, that is, from 3.00% before the outbreak to a new low level of 1.75%.
As countries around the world opened up their economic activities one after another, serious inflation broke out in countries around the world, and our country could not stay out of it. Bank Negara has no choice but to accelerate the pace of interest rate hikes in order to curb domestic inflation and stabilize the exchange rate of the Malaysian dollar.
The overnight policy rate will affect the interest rate of loans, and all domestic banks will follow the overnight policy rate set by the National Bank to adjust the interest rate of loans.
Here is a look at the past movements of Overnight Policy Rate (OPR).
