Bank Negara will announce on March 3 whether to adjust the OPR! The possibility of a rate hike is unlikely.
The National Bank (Bank Negara) will hold a monetary policy meeting (MPC) on March 2 and March 3 to discuss whether to adjust the overnight policy rate (OPR). The results of the meeting will be announced in the afternoon of March 3.
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, the OPR is likely to remain at 1.75% as the strengthening of the domestic vaccination certificate is in order and economic activities at home and abroad have gradually recovered. Some experts analyze that the U.S. Federal Reserve (FED) will announce an interest rate increase as soon as March, which will prompt our national banks to be forced to raise interest rates in the second half of the year as well.
The national bank’s overnight policy rate will affect the general public’s home loans, auto loans, and bank interest rates. The overnight policy rate will also affect the movement of the Malaysian currency and the trend of market funding.
According to the think tank’s forecast, Bank Negara will raise the interest rate 2 times in 2022 and the rate will be 2.25% p.a. at the end of the year. Investors should be prepared and adjust their portfolios appropriately.
