Malaysia Overnight Policy Rate (OPR) History: 2020 to Mid-2025
Malaysia's monetary policy over the past five years reflects the country's adaptive response to global and domestic economic shifts—from pandemic shocks to inflationary pressures and recent growth concerns. The key tool for monetary policy is the Overnight Policy Rate (OPR), which determines the cost of borrowing and has significant impacts on the economy and financial markets.
Below is a detailed table of Malaysia’s OPR announcements sorted by announcement date, including rate levels, changes, policy context, and references.
Analysis
The massive cuts in 2020 were aimed at softening the COVID-19 pandemic’s economic shock.
2021 held rates steady to prolong accommodative support amid uncertainties.
2022 marked the start of normalization with measured hikes in response to rising inflation.
Mid-2023 saw rates peak at 3.00% to contain inflationary pressures.
Most recently, a shift back to dovish stance occurred in July 2025 with a 25 bps cut to 2.75%, as growth concerns surfaced alongside manageable inflation.
Conclusion
Tracking Malaysia’s quarterly OPR changes over the last five years reveals a clear monetary policy evolution aligned with shifting economic challenges: from crisis-driven lows to normalization and a recent return to stimulus. This policy environment deeply influences investment decisions, requiring investors and fund managers to stay agile to rate shifts.