Bank Negara is expected to raise interest rates in the second quarter of 2022, and interest rates on loans will follow!
Moody’s Analytics (Moody’s) expects Bank Negara Malaysia (Bank Negara) to raise the overnight policy rate (OPR), commonly known as an interest rate hike, in the second quarter of 2022. This is due to the country’s relatively optimistic economic outlook for 2022.
Bank Negara held its last monetary policy meeting (MPC) of the year on November 3 and announced to keep the overnight policy rate (OPR) at 1.75%, the same rate that Bank Negara has maintained since July 2022.
The analysis points out that inflationary pressures due to supply chain disruptions and rising commodities will force the NB to raise interest rates in the second quarter of 2022. This also includes the expected further spike in crude oil prices in early 2022.
If the National Bank announces an increase in the overnight policy rate (OPR), interest rates on loans will follow, and borrowers will have to bear more interest on their loans each month. Time deposit rates will follow suit, and depositors will earn more interest.
The country began to cross state lines in early October and is expected to open its borders in December, allowing people who have completed vaccinations to enter the country without quarantine. Currently, 75.4% of our population has been vaccinated and 78.1% have completed at least one dose of the vaccine.
