Bank Negara Malaysia’s (BNM) decision to raise the Overnight Policy Rate (OPR) by 25 basis points to 3.25 per cent will not burden consumers.
Prime Minister Datuk Seri Najib Tun Razak said this was because the rate increase was minimal.
“Instead, the move has a positive impact on those who have savings as they will get higher returns on their savings,” he told the Malaysian media here, Thursday.
The Prime Minister was commenting on BNM’s decision to raise the OPR at the Monetary Policy Meeting (MPC) Thursday in order to normalise the degree of monetary accommodation amid the economy being firmly on a steady growth path.
The last time BNM revised its key rate was in July 2016 when it made a 25 basis-point cut.
Najib said BNM’s decision was based on the strengthening of the country’s economy, besides considering that the time has come for an action to be taken to re-stabilise the low interest rate.
“The OPR increase will restore the situation where after six quarters it reverts to the previous rate level.
“This is also to prevent us from pursuing a low interest rate regime that would bring great risks to our country,” he said.
Najib is currently on a two-day working visit to the Indian capital to attend the Asean-India Commemorative Summit in conjunction with the 25th anniversary of Asean-India dialogue.
Source :-The Edge Markets
– I’m still learn about this OPR. Still waiting for my latest mortgage statement for next month. Will it increase? If yes, it’s already a burden.