Malaysia’s OPR could rise by 25 bps in 2027

KUALA LUMPUR: Malaysia’s overnight policy rate (OPR) could rise by 25 basis points (bps) in 2027 amid expectations of further increases in global interest rates, according to MBSB Research.

The research house said markets are anticipating another 25 bps increase in the United States Federal Funds Rate (FFR) by end-2026, with other countries potentially following suit.

"There is a possibility for a 25 bps OPR hike -- a 50 bps increase seems like a stretch, as the OPR does not track the FFR so closely and local inflation is under control.

"However, there is no rush to raise the OPR, as local economic conditions are sound,” it said in a research note today, adding that any OPR increase is likely to take place in 2027.