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KUALA LUMPUR: Bank Negara Malaysia has maintained the overnight policy rate (OPR) at 3% at its Monetary Policy Committee (MPC) on Thursday, July 7.
Impact of OPR:
OPR related to BLR.
(1) spread between the upward re-pricing of base lending rates (BLR) and the fixed deposit (FD) rates, and
(2) timing difference in the re-pricing of loans and deposits. Based on our simulation (Figure 2), a 25bp hike in OPR would increase banks’ net earnings by about 0.8% assuming (1) a 25bp rise in BLR, (2) 20bp increase in FD rates, and (3) a 6bp upping of the interest rate on savings
accounts for every 25bp OPR increase.
KUALA LUMPUR: Bank Negara Malaysia has raised the Statutory Reserve Requirement (SRR) Ratio from 3% to 4%, effective from July 16, 2011.
Impact of SRR:
1) Every 100 bps increase in the SRR drains RM7.5b-RM8b of liquidity
2) Our sensitivity analysis shows an earnings reduction of about 1% for every 100bp increase in the SRR
BNM’s MPC Meetings in 2009-2011
Date Outcome
21 Jan ’09 (Wednesday) OPR cut by 75bps to 2.5%, SRR cut by 150bps to 2%
24 Feb ’09 (Tuesday) OPR cut by 50bps to 2%, SRR cut by 100bps to 1%
29 Apr ’09 (Wednesday) OPR maintained at 2%, SRR maintained at 1%
26 May ’09 (Tuesday) OPR maintained at 2%, SRR maintained at 1%
29 Jul ’09 (Wednesday) OPR maintained at 2%, SRR maintained at 1%
25 Aug ’09 (Tuesday) OPR maintained at 2%, SRR maintained at 1%
28 Oct ’09 (Wednesday) OPR maintained at 2%, SRR maintained at 1%
24 Nov ’09 (Tuesday) OPR maintained at 2%, SRR maintained at 1%
26 Jan ’10 (Tuesday) OPR maintained at 2%, SRR maintained at 1%
4 Mar ’10 (Thursday) OPR raised by 25bps to 2.25%, SRR maintained at 1%
13 May ’10 (Thursday) OPR raised by 25bps to 2.50%, SRR maintained at 1%
8 Jul ‘10 (Thursday) OPR raised by 25bps to 2.75%, SRR maintained at 1%
2 Sept ’10 (Thursday) OPR maintained at 2.75%, SRR maintained at 1%
12 Nov ’10 (Friday) OPR maintained at 2.75%, SRR maintained at 1%
27 Jan ’11 (Thursday) OPR maintained at 2.75%, SRR maintained at 1%
11 Mar ’11 (Friday) OPR maintained at 2.75%, SRR raised by 100bps to 2%
5 May ’11 (Thursday)
OPR raised by 25bps to 3.00%, SRR raised by 100bps to
3%
7 Jul ’11 (Thursday) To Be Announced (TBA)
8 Sep ’11 (Thursday) TBA
12 Nov ’11 (Friday) TBA
Source: BNM
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