by Ian Fan 
On 03 May 2023, Bank Negara Malaysia announced the increase of the Overnight Policy Rate (OPR) by another 25 bps from 2.75% to 3.00%.
Since then, and for the next 12 consecutive meetings (over 2 years), BNM kept the OPR at 3.00%.
On 09 July 2025, Bank Negara Malaysia announced the decrease of the Overnight Policy Rate (OPR) by 25 bps from 3.00% to 2.75%.
What does this mean to home buyers and businesses?
A lower OPR means that the borrowing cost will become more cheaper for consumers. Banks will revise the costs following the decrease in OPR by BNM, resulting in decreased interest rates for home buyers and businesses. The lower cost can open personal and commercial access to capital.
The decrease in OPR results in:
1. Lower monthly instalment payments
The lower interest rates make the cost of borrowing more cheaper, resulting in a reduce in monthly instalment payments.
2. Shorter loan tenure
Thanks to the decrease in the monthly installment amount, the repayment period can be shortened if the old sum is maintained.
Since most housing loans in Malaysia are Full Flexi Loans or Semi Flexi Loans, this means that your monthly payment will fluctuate with the rise and fall of OPR.
Previously, When Banks Decreased Interest Rates
Maybank cuts base rate and BLR by 25 basis points (09 July 2025)
Affin, Alliance Bank to cut lending and deposit rates after OPR reduction (09 July 2025)
Public Bank revises lending rates effective July 11 after OPR cut (09 July 2025)
RHB, Bank Islam to cut rates after OPR move (09 July 2025)