Policy Interest Rate (BNM) in Malaysia

Malaysia's official interest rate is the Overnight Policy Rate (OPR), set by the Monetary Policy Committee (MPC) of the central bank, Bank Negara Malaysia (BNM). It is the benchmark that steers interbank and lending rates across the Malaysian financial system.

The MPC decides the level of the rate at its ordinary meetings (six a year). The decision is announced the same day in a Monetary Policy Statement, released at 15:00 Malaysian time since July 2016 (previously 18:00).

A rise makes credit dearer to slow inflation and tends to strengthen the Malaysian ringgit (MYR); a cut makes credit cheaper to stimulate the economy.

It only moves on decision dates (a step function), and the MPC can also call unscheduled meetings that do not appear in the annual calendar.