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

The overnight policy rate (OPR) continues to remain at 2.75% following Bank Negara Malaysia’s (BNM) first monetary policy committee (MPC) meeting this year, which was held on January 22, 2026. This rate has been in place since July 2025, which was when BNM reduced the OPR from 3%.

The OPR has an effect on bank loans, as the lower it is set, the less expensive it is to borrow money and vice versa. BNM says the January 22 decision will not affect borrowing costs and that any changes will be due to other factors. As such borrowers are likely to continue enjoying lower financing rates, which makes things like car loans (hire purchase typically) more affordable and potentially easier to gain approval.

For 2026, BNM said in its release that its outlook remains resilient, supported by sustained domestic demand, moderating inflation, robust tech investments as well as supportive fiscal and monetary policies. This is despite downside risks like potentially higher tariffs, further escalation in geopolitical tensions and heightened volatility in global financial markets.

The MPC meeting on January 22 is the first of six scheduled for 2026, with others set to take place on March 5, May 7, July 9, September 3 and November 5.

Here is BNM’s full statement:

Monetary Policy Statement January 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%.

Global growth for 2025 turned out higher than expected, mainly reflecting lower-than-anticipated tariffs, higher artificial intelligence (AI)-led tech spending and stronger fiscal support. For 2026, while the impact of tariffs could weigh on global growth, the outlook remains resilient, supported by sustained domestic demand, moderating inflation, robust tech investments, and supportive fiscal and monetary policies. Downside risks remain, arising from potentially higher tariffs, further escalation in geopolitical tensions and heightened volatility in global financial markets. Additionally, there are continued concerns over the elevated valuations in financial markets. Upside potential includes stronger tech spending, a milder tariff impact on economic activity and pro-growth policies in major economies.

For the Malaysian economy, growth for 2025 is expected to be around the upper end of the forecast range. This growth momentum is expected to continue in 2026, supported by resilient domestic demand. Employment, wage growth and income-related policy measures will remain supportive of household spending. Investment activity will be driven by the progress of multi-year projects in both the private and public sectors, implementation of new smaller-scale public projects, continued high realisation of approved investments, as well as the ongoing implementation of national master plans. External sector will benefit from continued strength in electrical and electronics (E&E) exports and higher tourist spending. This growth outlook remains subject to uncertainties, in particular surrounding global developments. Downside risks remain from slower global trade and lower-than-expected commodity production. Meanwhile, upside potential to growth could arise from a better global growth outlook, stronger demand for E&E goods, and more robust tourism activity.

Headline and core inflation averaged 1.4% and 2.0%, respectively, in 2025. For 2026, headline inflation is expected to remain moderate amid the continued easing in global cost conditions. Global commodity prices are expected to remain modest, contributing to contained domestic cost conditions. Meanwhile, core inflation in 2026 is expected to remain stable and close to its long-term average, reflecting continued expansion in economic activity and the absence of excessive demand pressures.

At the current OPR level, the MPC considers the monetary policy stance to be appropriate and supportive of the economy amid price stability. The MPC will continue to monitor ongoing developments and assess the balance of risks surrounding the outlook for domestic growth and inflation.