Bank Negara will announce on May 11 whether to adjust the OPR!
The National Bank (Bank Negara) held a monetary policy meeting (MPC) on May 10 and May 11 to discuss whether to adjust the overnight policy rate (OPR). The results of the meeting will be announced in the afternoon of May 11.
The current OPR of the National Bank is 1.75% p.a. This rate has been maintained since July 2020, which is the lowest rate in the country’s history. The low interest rate environment is expected to relieve the economic pressure on the people, as their disposable income will increase.
Looking at the current trend, although the strengthening of domestic vaccination is in order and economic activities have gradually recovered, however, the Russian-Ukrainian military strife has led to the disruption of global supply chain and financial markets, domestic inflation in the United States has been high, and inflation in Europe may also be significantly climbed by the Russian-Ukrainian military action. Some experts have analyzed that the U.S. Federal Reserve (FED) will raise interest rates up to seven times this year, which will force our national banks to raise rates in the second half of the year.
The overnight policy rate of the national bank will affect the general public’s home loans, car loans, and bank interest rates. The overnight policy rate will also affect the movement of the Malaysian currency and the trend of market funds.
According to the think tank’s forecast, Bank Negara will raise interest rates at least once in 2022. Investors should be prepared and adjust their investment portfolios appropriately.
