Finance Minister II Amir Hamzah Azizan said Bank Negara Malaysia (BNM) takes a measured approach in managing the overnight policy rate (OPR), describing it as a powerful policy instrument that should be used only when circumstances warrant it.

Speaking at the Asean Leadership Forum in Washington, DC, on Friday, he noted that following the historically low OPR of 1.75 percent during the Covid-19 pandemic, Malaysia’s central bank has adopted a measured and gradual approach to rate hikes compared to other nations that responded with aggressive increases to deal with inflation.