To those who believe that banks are in the market to reject loan applications, do think again. Recently, after the OPR cut by Bank Negara Malaysia, there has been non-stop announcements from banks on their adjustments for their base rates. In fact, just two weeks ago, my colleague told me Maybank was offering the lowest rate around. 4.35 percent. Most other banks were at 4.45 percent. Well, Maybank has adjusted downwards but the best part is, this same colleague informed me that RHB is now offering just 4.25 percent. I think it points more to the fact that many banks are ‘hungry’ for more business.
The most recent one (26 July) would be Public Bank Bhd (PBB) which is trimming its base rate and base lending rate/base financing rate by 23 basis points effective July 27, 2016.This is following the reduction by Bank Negara in the overnight policy rate (OPR). its founder and chairman Tan Sri Teh Hong Piow said, “In line with the objective of the pre-emptive action by Bank Negara Malaysia to reduce the OPR, Public Bank reduces its lending and financing rates to pass on the benefits to the customers. The move is poised to be a positive catalyst for the Malaysian economy to continue growing on a steady path amid increasing signs of moderating momentum in global economic growth.”
This famous banker also added the following which is positive for the market. “On a positive note, domestic demand as the main engine of the Malaysian economy will remain supported by monetary accommodativeness, healthy financial condition and stable inflation in the domestic economy.” I think the sentiment is still negative but all these small little good news would continue to lend support to the market. A Facebook friend who’s already semi-retired commented recently, ‘Interest rates today are already considered very low versus the years after 1998.” I think what he wanted to say is that it’s a good advantage to have today. Happy deciding what to do next.
written on 26 July 2016
Next suggested article: Not young anymore, thus don’t simply buy any property