Personal Finance Term
OPR
Overnight Policy Rate
The interest rate at which banks lend to each other overnight, set by Bank Negara Malaysia. It is the benchmark that moves your home loan repayments and FD returns.
When BNM raises the OPR, banks raise their Base Rate (BR), which increases your variable-rate home loan repayment. Conversely, a cut reduces your repayment — but also reduces FD rates. The OPR is BNM's main tool for controlling inflation and stimulating the economy.
The OPR is announced at each Monetary Policy Committee (MPC) meeting, held six times a year. Between meetings, the OPR is fixed. As of 2026, the OPR sits at 3.00% following a period of post-pandemic normalisation.