Malaysia’s interest rate raised to 3.5%

[act7656]

Can anyone here explain in layman term how this is gonna affect our daily life? (eg: loan a car, house or the interest rate for your Fix deposit or savings).... what is you guys/gals opinion? :Not_Impressed:

 

[links]

For people who loan money from bank:
*loan interest up.......so your monthly installments expenses will increase.....

For people with plenty of cash:
*interest revenue increase.........can consider put in more money to the bank

For the Bank:
*can attract more money to flow in and increased interest cost
*will divert a part of the cost to the borrowers and will need to have more investment and need increase loan to the public to reduce the cash level in order to neutralise the impact on the increased interest cost

For the Gomen:
*can neutralise the inflation
*can attract more "hot money" from overseas to fill up the empty national reserve
*Semi Value will step out and said"the contractor will suffer for interest cost, we will consider to increase the price of the projects awarded to ensure they can complete the project"


the results:
rich men become richer and poor men become poorer...........

 

[devious17]

literally translates to say your roti canai and teh tarik is going to be costlier in the near future.

 

[BLaCkHoWLiNG]

sigh.........

 

[adyzul]

Interest rates up.....does is mean lending(loan) rate also up?

 

[levin]

everything is UP except your di-di !!!!

 

[act7656]

the next increase is expect on July this year ... about 4.0% from the news paper.

 

[links]

interest too high means the econ crisis is almost there...1998 econ crisis 6.5%

 

[cyclonite]

BLR is up lor....

Nvm la... we buy cars with cash wan mah... where got so cham until must take loan wan??

hahahahaha

 

[Cek Pit]

pak lah is going for the records book...right now our inflation rate is already the highest in 7 years accordi g to bloomberg...dont take tv3's word for it..thank you pak lah...the man who sold malaysia.

 

[satria_95]

Malaysia’s interest rate raised to 3.5%
By YVONNE TAN
PETALING JAYA: Bank Negara has raised the overnight policy rate (OPR) by 25 basis points to 3.5%. The ceiling and floor rates of the corridor for the OPR are correspondingly increased to 3.75% and 3.25% respectively.

The central bank said in a statement yesterday that with strong growth in world trade projected this year, the country would benefit directly through higher exports and better terms of trade due to the higher prices for Malaysia’s commodities. Domestic spending was expected to be sustained while consumer spending was expected to be well supported by steady employment and income growth, favourable credit conditions and the positive effect of the favourable external performance, it said.

Bank Negara said the current higher prices were a reflection of rising costs and there continued to be limited evidence of the second-round effects. “Based on present and future expectations, the policy rate would therefore only need to respond to new developments and information that become available going forward,” it said, adding that inflation was expected to be higher in the first half and moderate during the remaining six months of the year.

“At this new level, the OPR continues to be below the neutral level. Going forward, monetary policy would balance the risks to price stability and sustainable economic growth,” the central bank said. RAM Consultancy Services Sdn Bhd managing director and chief economist Dr Yeah Kim Leng opined that the rise in the OPR was within expectations.

“We are now at the early phase of the interest rate tightening cycle whereby the OPR would need to be raised gradually this year as the balance of risks shifts towards inflation rather than growth,” he told StarBiz.
Yeah said Bank Negara’s main concern had rightly shifted to real interest rates becoming negative due to higher inflation as this penalised savers and depositors and became a disincentive to savings.

“The raise is also perhaps indicative of the likely strong growth experienced in the first quarter,” he added.
Should the growth outlook continue to remain positive, “the interest tightening cycle will continue as we expect inflationary pressures to remain. All in all, we would not be surprised by another two or three increases of 25 basis points by year-end to bring interest rates to a neutral level that would provide a balance between growth and inflation,” Yeah said.
Another economist concurred, saying the increase in the OPR was to align it with the current macroeconomic conditions.
“The interest rates in Malaysia are relatively lower compared with other countries regionally and the rise should be positive for the overall economy,” he said.

Bank Negara raised the OPR on Nov 30 last year to 3% from 2.7%. It was raised again by 25 basis points to 3.25 % in February.
Meanwhile, Citigroup Global Markets said policymakers appeared increasingly confident the improving outlook for exports would help counter the drag from the fuel price hike on consumption to keep the economy on even keel.
“We are bringing forward our projection increases, with Bank Negara likely to hike the OPR by 25 basis points each in May and July, to 4%,” it said.

Wow. So financially technical to me but only cos I'm not those kind of economic or financial or the kind of person who'd understand what that article means.

But for the text in bold and red, I kinda doubt that would happen to me anytime soon, though I (and everybody else, I'm sure) hopes that it would happen.
Other than that, I just feel that the govt is making our lives harder and harder by taking more of our money, inclusive of those who are already struggling now.

 

[devious17]

you believe that shit? that is just to calm the public down so they dont go panicky and run like a dog with it's tail on fire maaaa..........steady employment and income growth my arse!

Brace yourself people.

 

[links]

our inflation is high so they need to increase the interest rate to neutralise the current and oncoming inflation.

but this is only significant to those who are having large cash cashflow, their lost in inflation are neutalised by the increase of interest rate....also US is possible to increase their interest rate again so the local financial sector will adjust themself further to match the US rate..

normal little peanut like us will still receiving the same pay but will subjected to the higher amount to pay for the loan.

 

[zephyr3d]

sigh.........

i 2nd that.... ****sssiiigggnnn*****

 

[auxoura]

woohoooooooo......interest rates increase......more people are getting interested issit in malaysia

*rofl*

 

[BluJacker]

within a year raised up 3 times...our loan interest is toward sky high... BLR form prvious 6% to 6.25%, then 6.5% and now reached to 6.75%...really fuck up!! those still on the loan will be paying higher interest or paying longer period to settle the loan.....watch out!!...not a good sign for economy....spare some cash or try to get your $$ to invest in order to overcome this....

 

[satria_95]

devious17,
That's what I thought too. As if there are so many rich people in this country. But Yeah! Hip Hop Hooray! The govt is trying to kill this country! Hell yeah! Come on everybody. Let's spend all our money and everybody becomes broke and jobless. Then malaysial will crash like nobody's business! WOOHOO!

Be prepared for more robberies, thieveries, thefts, etc etc etc.

 

[Cek Pit]

small robberies,petty theft can be stop.......by stopping those big robbers that is ruling the country!believe me then all petty robbery will stop....now what are we going to do about it?

 

[rorytate]

unless our salary goes up as well to compensate the interest.......

standard of living is getting higher and higher, and the offer for jobs is getting lower and lower.

A fresh grad salary could be from 800~1200 only??? WTH...my time was about 1500 to 1800 for those lucky ones....

anyway, we as a citizen cant do much. The G has fixed all the plans. Best is to complain to some dept and pray hard if they can take our grunts into consideration......(which i strongly believe that it will nto happen)

 

[devious17]

anyway, we as a citizen cant do much. The G has fixed all the plans. Best is to complain to some dept and pray hard if they can take our grunts into consideration......(which i strongly believe that it will nto happen)

partly correct or 50% incorrect but which ever way you look at it WE,the public, can make the difference!

We need to eliminate the tidak apa esok lusa ,orang lain akan bikin,kita duduk tengok attitude.

Of course, dont go rioting and act like a doofus who is just in the act to enjoy the moment.

Spread the news and cast your vote WITH CARE! make that change in the next EC.