Bank Negara’s interest rate hike in July is almost a foregone conclusion, and now it comes down to whether to raise the rate by 25 basis points or 50 basis points.
Bloomberg economists believe that Malaysia’s inflation rate continues to soar, the Federal Reserve also accelerated the pace of interest rate hikes, Bank Negara next month to raise interest rates is almost a foregone conclusion, now the only question is whether Bank Negara will choose to raise interest rates by 25 or 50 basis points.
Our minimum salary system was raised from May 1, that is, from the previous RM1,100 and RM1,200 to RM1,500. RM1,500 is the basic salary, not including allowances and overtime. The inflation rate in May shows that the price increase caused by the minimum wage system has been gradually fermented.
According to the data released by the Department of Statistics Malaysia, the inflation rate in May was 2.8%, which would be 0.60% higher than the historical average inflation level in the country. The inflation rate in April was only 2.30%.
Our food inflation rate was 5.20% in May, compared to 4.10% in April, and inflation in the transportation sector soared to 3.90% from 3.00% in April.
The Fed announced a 50 basis point rate hike in June and did not rule out a continued 50 basis point hike in the next few months. The Fed’s hawkish decision has forced national banks to accelerate their rate hikes as well, and it’s safe to assume that national bank rate hikes will lead to higher bank lending rates.
If you are a mortgage borrower, your monthly mortgage payment will increase, which will add to the burden of borrowers.
