KUALA LUMPUR, July 9 — Bank Negara Malaysia has cut the Overnight Policy Rate (OPR) by 25 basis points to 2.75 per cent to support economic growth amid global uncertainty.

The ceiling and floor rates of the OPR corridor were adjusted accordingly to 3.00 per cent and 2.50 per cent respectively.

The central bank said the move is a pre-emptive step to preserve the country's steady growth path as inflation remains moderate.

"While the domestic economy is on a strong footing, uncertainties surrounding external developments could affect Malaysia’s growth prospects," Bank Negara said in a statement.

Malaysia’s economy is expected to remain supported by resilient domestic demand, sustained investment activity, and steady household spending.

Favourable labour market conditions and the progress of public and private multi-year projects will continue to drive growth in the coming quarters.

Bank Negara noted that inflation averaged 1.4 per cent for headline and 1.9 per cent for core between January and May, and is expected to stay moderate throughout 2025.

Risks to the growth outlook remain tilted to the downside, due to softer global trade, weaker sentiment, and lower commodity output.

The ringgit’s performance, according to the central bank, will be shaped largely by external developments despite ongoing domestic structural reforms.

The Monetary Policy Committee (MPC) said it will stay vigilant and continue to assess risks to growth and inflation going forward.