Another interest rate hike by National Bank on September 8 is almost a certainty and it is now up to the National Bank to raise the interest rate by 0.25% or 0.50%.
Analysts from various investment banks predict that the National Bank will raise the overnight policy rate (OPR) by 0.25%, from 2.25% to 2.50%, on 8 September.
If you are a borrower of a home loan, then you need to be prepared for the possibility that the National Bank will raise the interest rate by 0.25% in September, November and January next year respectively. The National Bank’s rate hike will definitely lead to an increase in mortgage rates and borrowers should manage their finances well in advance to avoid a situation where they cannot afford a mortgage.
If you are a time deposit saver, you should also prepare your finances by choosing short-term time deposits for the time being so that you can enjoy higher interest rates at the first sign of the National Bank’s interest rate hike. You may choose to place a 3-month time deposit as many banks are now offering 3-month time deposit offers.
