The Overnight Policy Rate (OPR) set by Bank Negara Malaysia (BNM) is the most important interest rate in the country. At 3.00% in 2026, it influences your home loan rate, FD return, car loan cost, and the overall economy. Here is how OPR affects your finances.
What Is the OPR?
The OPR is the target interest rate set by BNM at which banks lend to each other overnight. BNM uses the OPR as its primary monetary policy tool โ raising it to fight inflation (making borrowing more expensive) or cutting it to stimulate the economy (making borrowing cheaper).
OPR History Malaysia (Recent)
| Date | OPR Rate | Action |
|---|---|---|
| July 2020 | 1.75% | Cut (COVID stimulus) |
| May 2022 | 2.00% | Hike (inflation control) |
| September 2023 | 3.00% | Held at current level |
| April 2026 | 3.00% | Held |
OPR and Home Loans
Malaysian home loans are typically variable-rate, pegged to the bank's Base Rate (BR) which moves with OPR. When OPR rises 25bps, your mortgage rate rises approximately 25bps unless you are on a fixed-rate package. Budget for OPR movements when stress-testing your ability to service your home loan.
OPR and Fixed Deposits
FD rates closely follow OPR movements. When OPR rose from 1.75% to 3.00% (2022โ2023), FD rates jumped from approximately 2.0%โ2.5% to 3.4%โ3.55%. If OPR is cut in future, FD rates will fall similarly. This is why locking in FDs at peak OPR periods is a strategic move.
Model the impact of rate changes on your mortgage with our ๐ Mortgage Calculator.
Our editorial team specialises in Malaysian personal finance โ covering loans, taxation, insurance, EPF, and Islamic finance. Every article is fact-checked against Bank Negara Malaysia (BNM), LHDN, and major Malaysian bank publications. We reference our calculators (which use industry-standard formulas) to ensure consistency between our written content and tools. Learn more about our methodology โ