Fixed deposit’s rates should stay the same. Mortgage rates should also be staying the same. At least the older folks do not need need to feel even more worried. As for the home buyers, current rates are already low… Bank Negara Malaysia (BNM) has decided to keep the Overnight Policy Rate (OPR) unchanged at 1.75%. By the way, this was my thoughts about interest rates just recently. Read it here. Rate cuts need not be too hasty
Article in nst.com.my Bank Negara Malaysia (BNM), at its Monetary Policy Committee meeting today, held the OPR at 1.75 per cent following cumulative 125 basis points (bps) cuts over four straight meetings since January this year.
United Overseas Bank (Malaysia) Bhd senior economist Julia Goh said, “Bank Negara sounded more upbeat with highlights that the global economy continues to improve and Malaysia’s economic activity recovering from the trough in April. It expects the improvement to continue into 2021, though the pace of recovery will be uneven across sectors.”
She added, “The recovery will continue to be supported by the fiscal stimulus packages, monetary and liquidity measures, as well as the stimulus effect from the cumulative 125bps reduction in OPR between January-July.”
Bank Negara’s next monetary policy decision is due in November, which marks the final meeting this year. Please do read the full article here. Article in nst.com.my
I think in her own assessment, Julia has explained briefly about the reason why BNM has left the rates unchanged. BNM believes the recovery has started and thus the current monetary stance is already accommodative enough and does not need further stimulation. Remember, there is really no need to be too hasty unless situation really gets critical. By the way, BNM has always been ahead of the curve thus far in their accommodative stance whenever needed.
After all, fiscal policies will also now move in as well, especially the many infrastructure projects which I personally think is good for the future. Whether it’s that High Speed Rail KL – SG which a meeting should be held very soon or that MRT Line 3 which is actually a connect-the-final-dots for the MRT coverage and even that never ending saga; ECRL.
Oh yeah, this was what happened when I visited Genting Highlands just 2 weeks back. I spent RM500 in Genting Highlands. This was not all. I also visited 1 Utama mall as well which is my favourite mall and well, I did have to circle a bit more before finding car park slots. Surprised? Malls start to show vibrancy again When I bought my new LED TV, I asked the shop if his business was affected. He replied that sales had stayed almost the same. All these were part of the reason why BNM thinks recovery has started and they would prefer to see how much it goes before deciding further. The next meeting is in November 2020. Let’s hope they maintain the rates again…
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