|OPR up mean BLR will follow up:|
Cham liao - I have house loan and margin account both are BLR-2.2.
So, BLR currently is 6.6, based on 25 basis point it will increase to 6.85.
What is BLR??
Base Lending Rate (BLR):
BLR in Malaysia is a reference interest rate used by banks to decide how much to charge for various products they offer. In Malaysia, home loans are normally quoted as a percentage above or below the BLR. This means, if the BLR increases or decreases by a certain amount, the interest rates charged on floating rate loans also increase or decrease by the same amount.
BNM raises OPR by 25 basis points to 3.25%
|Business & Markets 2014|
|Written by Jonathan Gan of theedgemalaysia.com|
|Thursday, 10 July 2014 18:42|
The central bank’s move to increase OPR is expected, given the rising inflationary pressure. The monetary authority had placed the floor and ceiling rate for the OPR at 3% and 3.5% respectively.
In a statement, BNM said it expected inflation to remain relatively stable, but said that it is expected to remain above average.
“Demand driven inflation remains contained. Looking ahead, inflation is, however, expected to remain above its long-run average, due to the higher domestic cost factors.”
The central bank said that the latest indicators suggest Malaysia would experience continued strength in exports and private sector activity.
“The overall growth momentum is expected to be sustained. Exports will continue to benefit from the recovery in the advanced economies and from regional demand. Investment activity is projected to remain robust, led by the private sector.
“Private consumption will be supported by stable income growth and favourable labour market conditions. The prospects are therefore, for the Malaysian economy to remain firmly on a steady growth path,” BNM said.
It added that the MPC has decided to adjust the degree of monetary accommodation, in order to mitigate the risk of broader economic and financial imbalances.
“Further review of the degree of monetary accommodation, will depend on the MPC’s assessment of the balance of risks surrounding the outlook for domestic growth and inflation. At the same time, the MPC will also continue to monitor for risks of destabilising financial imbalances,” concluded BNM.
The long-awaited rate hike had met consensus expectations of a hike of 25 basis points.
A recent poll by Reuters, reported that 13 out of 17 analysts had expected a 25 basis point hike from BNM.
BNM had indicated in its last meeting, that it might need to counter the “build-up of financial imbalances,” prompting many financial institutions to expect an interest rate hike.