News about OPR

Whether correctly or incorrectly, Malaysia’s current “supportive monetary policy” may be construed as “accommodative or dovish,” especially in relation to higher interest rates in several other economies.

A vast majority of Malaysian households, about 7 million of them (88.

The policy rate has remained unchanged for 10 months and was last raised in May 2023 by 25 basis points, closing a cycle of what has been called “normalisation” by the central bank.

MIDF Research said from a medium-term perspective, policy rate normalisation is needed to avert risks that could destabilise the future economic outlook such as persistently high inflation and a further rise in household indebtedness.

This is the fourth time that the MPC has decided to maintain the OPR at 3% since July 2023.

Furthermore, Maybank IB expects the 10-year Malaysian government securities (MGS) yield to lower to 3.

Throughout 2023, EdgeProp has delivered numerous industry stories to ensure you stay well-versed and empowered in navigating the property landscape.

“The real danger is when borrowers are already struggling to service the monthly loan instalment before the OPR increase, they will definitely find it very difficult to pay for even the slightest increase in loan instalments.

In its recent OPR announcement, BNM highlighted that Malaysia’s GDP measure for 2023 indicates an improvement in the nation’s economic activity.

This is despite calls from some quarters for the central bank to raise the key interest rate to help stabilise the ringgit, which is near a 25-year low against the US dollar.