BNM has announces rise of OPR by 25 points since 2014!
What’s the story? Here’s the big news!
Bank Negara Malaysia (BNM) has announce that they are raising the overnight policy rate (OPR) by 25 basis points to 3.25% during its Monetary Policy Committee (MPC) – as reported by The Edge.
This is the first hike in four years where 2012, BNM has reduced the OPR 25 points to 3.00%. In short, we are back to square one
What’s OPR, in case if you’re asking.
Basically OPR is the rate that BNM set to be used in all transaction that involve Depository Institutions (Meaning most banks lah). This overnight policy rate or interest rate is a rate a borrower bank has to pay to a leading bank for the funds borrowed.
The main question to us now is “So how does this rise of OPR impacts us?”
In short, there will be a raise in the amount of instalment that you having. The below are the how it will impact you (now versus after the Rise of OPR). Credit to the Ahyat on this table.
This rise of OPR is actually predicted as on last Nov 2017, there was announcement on this (as reported by The Star)
With this increase, it’s actually means that we are going to the right direction as our economy is blooming in Malaysia. Just the sad point is that we need to pay more for our interest for this increase on OPR