Bank Negara Investment Bank predicts that Bank Negara will raise interest rates by 0.25% or 25 basis points this year! The overnight policy rate (OPR) will be raised to 2% from the current 1.75%.
Bank Negara’s investment bank predicts that coronary disease poses a risk to economic growth, but coronary disease cannot stop the rise in inflation, so Bank Negara is forced to raise the overnight policy (OPR) by 25 basis points at the end of this year.
Once the National Bank raises the overnight policy rate (OPR), bank loan rates will follow suit and borrowers will have to pay more each month. If you are currently paying about 4.50% interest on your mortgage, you will be paying about 4.75% after the rate increase.
Interest rates on time deposits will also increase, resulting in higher interest rates for time deposit holders. If you are planning to place a time deposit, you may want to consider placing a shorter term deposit as this will ensure that you will be the first to enjoy the increased interest rate when the national bank raises the interest rate.
If you are a stock investor, you should pay special attention to whether the stock you buy belongs to a high lending company, because once the national bank announces an interest rate increase, the high lending company will have to pay a higher interest rate, and the company’s profit will be reduced.
