OPR hike is good for fixed deposit savers

Do you put your money at fixed deposit (FD)? Do you heard about Overnight Policy Rate that being announced by Bank Negara?
Maybe you heard about the negative aspect on it but do you know there’s a good benefit if you are a fixed deposit (FD) savers.

According to Maybank Investment Bank Research on Friday, for full year 2017, Malaysia’s headline inflation rate was +3.7% on-year (2016: +2.1%) while core inflation rate was stable at +2.4% on-year (2016: +2.4%).

It said Bank Negara projects the inflation rate to moderate in 2018 (2018E official: +2.5% to +3.5%) on expectations of a smaller effect from global cost factors, although the central bank acknowledges the role of global crude oil prices in influencing the trend in inflation.

As for Maybank Kim Eng’s Economics Team, it is projecting a 2018 headline inflation rate of +2.5% to +3.0%.

“Against average fixed deposit rates of 3%, the real rate of return on deposits remained negative in 2017.

“However, the negative gap has been narrowing and with inflation expected to trend lower still to 2.5%-3.0% in 2018, the gap is projected to turn positive, especially with this 25bp hike in the OPR,” said Maybank Research.
Source:-The Star

Last week, one of my friends ask me about fixed deposit and unit trust. He
Do you know about fixed deposit  ? If you have too much money to handle

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