Kuala Lampur, Aug. 17 -- The recent decision by Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.75 per cent marks a strategic shift in monetary policy aimed at revitalising domestic demand and supporting Malaysia's economic recovery amid global uncertainties. This move, the first rate cut since 2023, is expected to have a ripple effect across the loan and property markets, while also stimulating broader economic activity.

Lowering the OPR directly reduces the cost of borrowing for both individuals and businesses. For households, especially those with floating-rate mortgages, this translates into lower monthly repayments. For example, a RM500,000 home loan over 30 years could see a reduction of...