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Bank Negara likely to hike OPR to 3% tomorrow

Property News/ 18 January 2023 Leave a comment

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Standard Chartered (StanChart) expects Bank Negara Malaysia (BNM) to increase the overnight policy rate (OPR) by 25 basis points to 3.0% during its monetary policy meeting tomorrow, reversing the Covid-induced rate cuts.

“Following a likely January hike, we expect a pause in March, before another 25bps hike in May, assuming the government announces some form of subsidy adjustments for the second half of 2023,” said the research house.

StanChart said if subsidies are removed for only 20% of RON95 users, headline inflation is estimated to increase by only 0.9% on an annual basis.

“We will watch for BNM’s assessment of its monetary policy stance, which may shed light on how close the central bank is to the end of the tightening cycle,” said analysts Edward Lee and Jonathan Koh.

They said that Malaysia’s GDP growth for 2022 is expected to come in at 8.8% as inflation was elevated and broad-based, which reflected robust demand inflation despite rising manufacturing and services wages.

“Upside inflation risks remain, with broad-based inflationary pressure, rising services costs and still-high import prices,” said Lee and Koh.

Source: TheEdgeMarkets.com

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  1. Naveen
    January 18th, 2023 at 09:11 | #1

    this is going crazy day by day…the bank is simply increasing the OPR by the name of “INFLATION”…what ..you think people down here doesn’t affected by inflation..then are the people get increment in their pay to compensate back the INFLATION??? M40 is just being ignored by the government and yet they are the CORE people in the country that carries the word ECONOMY for the country…Hey..we ARE the property and vehicle buyers…damn ..and yet …we ARE also the tax payers!!!!

  2. Fabian
    January 18th, 2023 at 11:11 | #2

    Malaysia so reluctant to increase the OPR. Meanwhile all other countries fighting the inflation. If Malaysia still don’t want to increase OPR drastically. By then every other country is free from inflation, Malaysia will still be struggling to escape from bankruptcy. Don’t say OPR hike useless, you see even after OPR hike, everywhere drives new car. More and more Porsches and luxurious brand on the road. One household of 4 family members will have all 4 cars or more. This is not a sign of OPR hike need, I don’t know what is

  3. JunCW
    January 18th, 2023 at 11:21 | #3

    Malaysia OPR hike is the mildest of all the struggling country with the current heightened CPI. The relentless OPR hike is in US, not Malaysia. Here we do not want to have OPR hikes because no knowledge and uneducated. Inflation will slap us later in the stage. Don’t be surprised you will need to pay rm20 for a chicken rice. When that happens, start blaming the government for not increasing the interest rate.

  4. WS Lee
    January 18th, 2023 at 11:25 | #4

    Hahahhaha now only 3%. US already 4.5% liao. bnm sleeping or what

  5. Angelina
    January 18th, 2023 at 11:48 | #5

    Typical malaysian will complain about interest hike, and then go test drive a mercedes. Then complain a bit more, then next week get the car and drives out. wkwkwkwk

  6. LL
    January 18th, 2023 at 12:25 | #6

    @JunCW
    That’s why we said is possible price of Zen will increase up to RM1M in future due to prime location & hot demand. FYI all unit sold out and unblock seaview. OPR hike will lead to property price increase. Zen price will hike to 900k or 1M too. Property investment at right location and right timing of inflation will appreciate.

  7. jack
    January 18th, 2023 at 14:06 | #7

    @LL
    This news also want to mention zen ah, this site can change to the way of zen, adoi 😛

  8. shanqiao
    January 18th, 2023 at 16:17 | #8

    Nowadays almost all banks in Malaysia are making Tons and Tons of ‘ blood moneys ‘ ! Many thanks to the “closed one eye” attitude of our govt. !

  9. LL
    January 18th, 2023 at 21:13 | #9

    For buyers of The Zen, we don’t have to worry because the increase in our unit value far surpass the OPR hike…we are earning and positive cash flow despite the increase in OPR

    Zen is heading towards $1M by end of this month
    Quay West is heading towards $2M by end of this month
    Queens is heading towards $100K by end of this month

  10. LL
    January 18th, 2023 at 22:03 | #10

    @LL
    Yes. Correct. The Zen will have many house ready to lelong.
    Quaywest if you check in webpage that’s full of homestay.
    Queens price will be even lower than Zen & Quaywest.

  11. franky
    January 19th, 2023 at 01:07 | #11

    Whatever Zen or Queen or whatever F, if you buy for own stay, then it’s ok. If you buy and can rent out at good rental, then it’s ok too. Buy if you buy, leave it there empty or rent out at such low rental that cannot even cover interest, then tenants and developers will thank you for your support!!!!:)))))))))

  12. LL
    January 19th, 2023 at 07:48 | #12

    @shanqiao
    By looking in your ID name “shanqiao”, already know that you’re qiao qiao. This is basic & if Bank never increase rate then we will be in huge disaster as all price and inflation will be worse. We will be next Argentina where all goods shoot up to 400% price increase. Bank increase rate is to minimize inflation impact in market.

  13. shanqiao
    January 19th, 2023 at 15:52 | #13

    When the banks raise their interest rate, they immediately write to their borrowers the new instalment you must pay and no grace! But then, they “will only pay their fixed depositor as from when or when onward. They gain Big (unaware by the public) from the “leeway” if in huge public sum !

  14. LL
    January 19th, 2023 at 19:46 | #14

    @shanqiao
    Regardless of what happened, the Zen &QW definitely will gain much then this OPR interest rate. It’s in double digit percentage earning faster than bank rate. Zen & QW are best investment so far in Penang. Even affordable house from 300k up hike to close 600k now. QW affordable unit 300k and now almost 600k too. You really need to study again rather than complaining.

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