BNM’s OPR Decision: What It Means for Your Mortgage

Categories: Malaysian economy and BNM

BNM’s OPR Decision: What It Means for Your Mortgage

Bank Negara Malaysia will announce the OPR this on 6th November 2025

Our current Overnight Policy Rate (OPR) is 2.75 percent. The decision is to be made by the Monetary Policy Committee (MPC) of Bank Negara Malaysia. Current rate is considered as appropriate and supportive of domestic economic growth and as usual, the MPC will monitor global and domestic economic risks before they make their next decision.

In terms of predictions, analysts are expecting the OPR to stay the same and will only be adjusted lower in early 2026 when there is a slowdown in exports or business credit growth. If we look at the OPR and its impact on the ringgit, it does seem that NOT lowering the OPR will be supportive for the ringgit. Do read the below article for some understanding.

Article in malaymail.com The ringgit opened higher against the US dollar on the first trading day of November, nearing its one-year high, with traders anticipating an unchanged overnight policy rate (OPR) at 2.75 per cent. At 8am, the ringgit stood at 4.1795/2005 against the greenback, compared with last Friday’s close of 4.1860/1930.

The level was last seen on October 2, 2024, when the local note traded at RM4.1760.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to maintain positive momentum ahead of Bank Negara Malaysia’s monetary policy committee (MPC) decision on November 6. Article in malaymail.com

My personal opinion as a property investor?

I would love if the interest rate is low because then it meant my monthly repayment will be lower. However, I am well aware that the current interest rate level is already at a low level. I still remember the rate I paid when I bought my first property way back in 2003. 🙂 Please do take a look at the interest rate in Malaysia. Lending Rate (average on outstanding loan) from 2004 until 2024.

Graph showing the average lending rate on outstanding loans in Malaysia from 2004 to September 2025, peaking near 7% and trending down to 4.72%. — Source: https://data.gov.my/dashboard/interest-rates

Some comments on BNM’s decision tomorrow?

Article in nst.com.my: Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid: “With the Malaysian economy still growing at a healthy pace, with third quarter 2025 GDP at 5.2 per cent compared with 4.4 per cent in the first half of the year, Bank Negara is in no hurry to cut the OPR.”

Universiti Teknologi Mara Business Management Faculty senior lecturer Dr Mohamad Idham Md Razak: “”Bank Negara likely sees the current OPR as sufficient to maintain a neutral stance, in that it is not overly accommodative to stoke inflation but not so tight as to stifle growth..” Do read here for the full article: Article in nst.com.my:

What’s the difference if rate is reduced by 0.25 percent?

Take a look at the below. For a RM500,000 loan, we can save RM65 per month. That’s RM780 per year. Enough for a return flight KL – Sandakan and 2 nights at budget hotel. 🙂 Yes, enough savings for a quick getaway every year…