Yes — if your home loan is a floating-rate loan, which most Malaysian home loans are. Here's the chain, step by step, so you can see exactly how it reaches your instalment.
Bank Negara sets the Overnight Policy Rate (OPR), which is currently 2.75%. Each bank sets its own Base Rate (BR) or Base Lending Rate, and that Base Rate moves up or down roughly in line with the OPR. Your home loan is priced as "Base Rate plus (or minus) a spread" — for example BR + 0.45%. So when the OPR changes, your bank's Base Rate usually follows, and your loan's effective rate moves with it.
What that means in ringgit: when the OPR rises, your monthly instalment on a floating loan goes up; when it falls, your instalment goes down (or, on some loans, your tenure shortens while the instalment stays the same — check which applies to yours). On a hold, like the current 2.75%, nothing changes this round.
How to check your own loan: look at your loan offer letter or latest statement for the pricing line — it will say something like "BR + 0.45% p.a." If you see a fixed rate instead, OPR moves don't touch you for the fixed period. If it's floating, every OPR decision is worth a glance.
What to do about it: don't try to predict the next OPR move — plan around the rate you have. Build a buffer so a 0.25% rise wouldn't break your budget, and if rates fall and you're locked into a worse deal elsewhere, that's when refinancing is worth pricing. You can follow every OPR decision on our OPR Tracker.