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OPR is maintained at 3 pct because of a few valid reasons

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OPR is maintained at 3 pct because of a few valid reasons

I do NOT believe we should keep increasing rates just so RM could get stronger

Until today, I still have friends who continue to think the Malaysian economy is collapsing soon. Every now and then they would put out negative statements in their social media but somehow they still want to have higher salary, still hope for promotions and more.

I wonder what would they really do if that happens. Get an opportunity to buy great assets at super low prices? Property in a popular neighbourhood at the price of a not popular neighbourhood? (yeah, sure…)

Buy up some shops which the business is supposed to be great but because of crisis it had to stop and when the economy gets better it will be back? (Yeah… I am very sure…)

Or when the economy is bad, then their company or their business would suddenly prosper while every other business just have to fold? (Yeah… keep dreaming)

I am not sure if I would be right but I do wish that I am right and that it the economy will continue to move upwards even if it’s not as fast as I hope it would. One major weakness we have? Definitely the abolishment of the GST which has caused so many thoughts about what new taxes to introduce just to replace the effectiveness and efficiency of the GST. (which is used by over 100 countries in the world including that country down south which everyone says we should follow)

Anyway, coming back to Malaysia. Our Overnight Policy Rate is maintained. This means your FD does not get more money and your home repayment does not increase too. Happy reading the statement below.

Statement source:

Monetary Policy Statement

Embargo : Not for publication or broadcast before 1500 on Thursday, 6 July 2023
6 Jul 2023At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.00 percent.The global economy continues to expand, driven by resilient domestic demand supported by strong labour market conditions. Global growth, however, remains weighed down by persistent core inflation and higher interest rates.

While China’s reopening remains supportive of the global economy, its pace of recovery has slowed in recent months. Globally, headline inflation continued to moderate, but core inflation remains above historical averages. For most central banks, the monetary policy stance is likely to remain tight. The growth outlook remains subject to downside risks, mainly from a slower momentum in major economies, higher-than-anticipated inflation outturns, an escalation of geopolitical tensions, and a sharp tightening in financial market conditions.

Following a strong outturn in the first quarter of the year, the Malaysian economy expanded at a more moderate pace in recent months as exports were weighed down by slower external demand, as expected. Growth for the remainder of the year will continue to be driven by resilient domestic demand. Household spending continues to be underpinned by favourable labour market conditions, particularly in the domestic-oriented sectors. Tourist arrivals have been steadily improving, and are expected to continue rising, thereby lifting tourism-related activities. Investment activity would be supported by continued progress of multi-year infrastructure projects.

Domestic financial conditions also remain conducive to financial intermediation amid sustained credit growth. While the growth outlook is subject to some downside risks stemming from weaker-than-expected global growth, upside risks mainly emanate from domestic factors such as stronger-than-expected tourism activity and faster implementation of projects.Headline inflation has continued to ease amid lower cost factors.

While core inflation has also moderated, it remains elevated relative to the long-term average amid lingering demand and cost factors. For the second half of 2023, both headline and core inflation are projected to trend lower, broadly within expectations. Risks to the inflation outlook remain highly subject to the degree of persistence in core inflation, changes to domestic policy on subsidies and price controls, as well as global commodity prices and financial market developments.

At the current OPR level, the monetary policy stance is slightly accommodative and remains supportive of the economy. The MPC continues to see limited risks of future financial imbalances. The MPC remains vigilant to ongoing developments, and will continue to monitor incoming data to inform the assessment on the outlook of domestic inflation and growth. The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability. See also:

  1. Monetary Policy Statement (MPS) Snapshot: July 2023
  2. Frequently Asked Questions

Bank Negara Malaysia
6 July 2023

— end of statement —

Happy believing. Just need to take the right actions and not just talk, talk, talk and no action.

Property News Malaysia? Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). Alternatively, Follow me on Telegram here.Please LIKE FB page to get daily updates about the property market beyond articles. Else, follow me on Twitter here.Next suggested article: When rates rise, property transactions drop, right?

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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