Bank Negara will most likely raise the rate by 0.25% or 0.50%.
On September 8, Bank Negara will very certainly increase interest rates once more. At this point, it is up to Bank Negara to decide whether to increase rates by 0.25% or 0.50%.
On September 5, the ringgit depreciated to a level of 4.4940 against the US dollar, marking a new low for the currency since January 2017 and the first time in five years. For the third day in a row, the ringgit has declined versus the dollar.
According to the Department of Statistics Malaysia’s July inflation figures, the nation’s inflation grew by 4.4% over the same time, which was an increase of 1% from 3.3% in June. As a result of the inflation rate’s continued rise, Bank Negara must likewise increase interest rates.
Investment bank analysts from AmInvestment Bank, TA Securities, Kenanga, and Maybank forecast that on September 8, Bank Negara will increase the Overnight Policy Rate (OPR) by 0.25%, bringing it from 2.25% to 2.50%.
House loaners should be aware that the Bank Negara may increase interest rates by 0.25% in September, November, and January of the following year. The National Bank’s increase in interest rates will result in an increase in mortgage interest rates. In order to avoid being unable to pay the mortgage, borrowers should try to manage their money in advance.
If you make fixed deposit deposits, you need also be ready to handle your finances. Selecting short-term fixed deposits will enable you to initially benefit from higher interest rates after the National Bank hikes interest rates. A 3-month fixed deposit is an option as many banks currently provide a 3-month fixed deposit deal.
