Instant news! Bank Negara announces 25 basis points interest rate hike!
According to a statement issued by Bank Negara, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to raise the Overnight Policy Rate (OPR) from 1.75% to 2.00%, which is commonly known as an interest rate hike, after a meeting.
The National Bank pointed out in its statement that the restart of the global economy and the improvement of labor market conditions could support further recovery of economic activity. These factors could mitigate the impact of the Russian-Ukrainian military conflict and the Chinese embargo to contain the epidemic. With rising commodity prices, tight supply chains and sharply increasing inflationary pressures in the U.S., several central banks around the world have accelerated measures to adjust monetary policy.
In terms of Malaysia’s economy, the country’s export economy continues to grow and domestic demand has strengthened. Bank Negara expects our inflation rate to be between 2.2% and 3.2% in 2022.
With Bank Negara’s announcement of a 25 basis point interest rate hike, interest rates on both home loans and time deposits will follow suit. If you have a home loan, the amount you have to pay each month on your loan will increase. Borrowers are urged to check with their banks for the latest interest rates and monthly loan payments.
The National Bank is expected to raise interest rates two times this year, or 25 basis points each, and the overnight policy rate will be 2.25% at the end of the year.
