According to a survey report, economists predict that Bank Negara Malaysia will raise the overnight policy rate (OPR) three times by the end of March 2023, with the rate at the end of March next year to be 3%, that is, back to the pre-epidemic level of January 2020.
National Bank has already raised the overnight policy rate (OPR) twice this year, in May and July, that is, to 2.25% p.a. from the previous 1.75%. The National Bank’s interest rate hikes have been met with mixed feelings, with those who have borrowed expressing concern and those who have not borrowed hoping that the rate hikes will curb domestic inflation.
With the outbreak of severe inflation at home and abroad, it is expected that the Bank will continue to raise interest rates, depending on the extent of the increase. National Bank is likely to raise interest rates in September, November, January or March next year. Borrowers are urged to be prepared and prepare their reserves in advance so that they will not be unable to afford the monthly instalments as a result of the Bank’s continued interest rate hikes.