Malaysia has finally moved. After a year of policy pause, Bank Negara Malaysia (BNM) has cut rates - quietly, deliberately, and without the usual fanfare. Liquidity had already been loosening behind the scenes and now the shift is official. At the same time, the Ringgit remains under pressure, black market FX is back in play and banks are still capping overseas card use. Growth is slowing, inflation is soft and the door to further easing is now open. The pivot may have been discreet - but it was real.
Monetary Policy
On 9 July, BNM cut the Overnight Policy Rate (OPR) by 25 basis points to 2.75% - its first move in five years. The OPR corridor was also adjusted, lowering the ceiling to 3.00% and the floor to 2.50%. No drama, no headlines - but the message was clear: inflation is tame, growth is softening, and the tightening cycle is done.
This follows the SRR cut in May, which quietly injected MYR 19 billion into the system [look back to June 2025, “Off the Radar”]. Taken to...
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