Homeowners, your interest rate may stay the same or go higher? BNM will decide today.

Homeowners, your interest rate may stay the same or go higher? BNM will decide today. OPR lah.

How much extra if I have a RM500,000 home loan today?

Just look at the two calculations from calculator.com.my The difference is roughly RM67 per month or RM804 per year if there are no further changes. Is this likely or less likely? Bank Negara Malaysia (BNM) will decide today and we will know if later afternoon.

Article in theedgemaaysia.com Malaysia is expected to keep its benchmark interest rate un

changed on Thursday, with policymakers mindful of potential price pressures from the government’s plans to further reduce fuel subsidies.

Bank Negara Malaysia (BNM) will maintain the overnight policy rate (OPR) at 3%, according to all 22 economists in a Bloomberg News survey. The central bank last adjusted borrowing costs in May 2023, with a 25-basis-point hike.

Consumer prices that rose just 2% in May from a year earlier are at risk of accelerating after the cost of diesel jumped 56% last month. That is due to the government’s move to replace blanket diesel subsidies with targeted assistance. Prime Minister Datuk Seri Anwar Ibrahim’s administration has announced a similar plan for RON95 — Malaysia’s most widely-used gasoline — later this year. Article in theedgemaaysia.com

How significant is this change, assuming it’s just 0.25 percent?

A change of 0.25 percent means every month, the repayment goes up by around RM67. This is RM804 per year. RM67 per month may also mean less 6.5 cups of ZUS latte. RM804 per year means one less vacation to the Langkawi for 2. Flights of RM200 per pax and stay 2 nights in a 4-star hotel. Image below from booking.com This is why 0.25 percent is still substantial enough.

Happy anticipating and I also wish the rate would stay the same too even if I know people with lost of Fixed Deposits in the bank will wish for a higher rate instead. It could also bolster the ringgit as well lah.

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