Will the National Bank raise interest rates again? The announcement will be made next Thursday!
Bank Negara will hold a monetary policy meeting on Thursday, November 3, 2022, and will announce after the meeting whether to adjust the overnight policy rate (OPR) again.
The country’s overnight policy rate (OPR) is currently 2.50% p.a. The National Bank has adjusted the OPR three times this year, by 0.25% p.a. in May, July and September. If the National Bank raises the interest rate by 0.25% again next week, it means that the country has already raised the interest rate by 1% this year.
Different experts have different views on whether the National Bank will raise the overnight policy rate (OPR) on November 3. Some experts believe that it will be difficult for the NBU to stop raising interest rates under the pressure of the Fed’s continued rate hikes, so these experts believe that the NBU will raise rates by another 0.25% next week.
However, some experts believe that the National Bank may hold off on raising interest rates until the national elections are held, which is to avoid raising rates to influence the election results. These experts also believe that the country’s inflation rate has already declined slightly in September, so the National Bank does not need to continue raising interest rates.
For borrowers, an interest rate hike by the National Bank would add to their burden. However, for time deposit depositors, the Bank’s interest rate hike will allow them to earn more interest.
