The Bank of Negara announced on January 19 that it will maintain the current interest rates and that the next opportunity to raise interest rates will fall on March 9.
Bank Negara holds monetary policy meetings (MPC) six times a year to discuss whether to regulate the domestic economy by adjusting interest rates. The Bank’s first monetary policy meeting in 2023 fell on January 19, at which it unanimously decided to maintain the existing overnight policy rate (OPR).
The NB decided to maintain the overnight policy rate at 2.75% p.a., with the upper and lower limits now ranging from 2.50% to 3.00%, which is back to the pre-epidemic level, considering that the situation has eased both domestically and internationally.
The National Bank is holding off on raising interest rates, which is good news for borrowers, who no longer have to pay more on their monthly loans. However, the delay in interest rate hike may also lead to a further devaluation of the Malaysian currency, and funds may be withdrawn from our market in search of higher yields.
With the National Bank maintaining its interest rate of 2.75% p.a., there will be no major changes in the interest rates for time deposits in the country’s banks. The current interest rate for a regular 12-month time deposit is 2.85% p.a., while a time deposit offer (Promo) can be found at a super high rate of 4.80% p.a. for up to 24 months of deposit.
