The article highlights Malaysia’s positive economic indicators, including controlled inflation at 1.6%, a low unemployment rate of 2.9%, and a GDP growth of 5.7%. Despite good news, there is a tendency for negative content to attract more attention. Government support initiatives are also mentioned, benefitting millions.
If Bank Negara does NOT increase the OPR, will this help the property market? Read the following article first. Article in theedgemalaysia.com. In a note
Knight Frank Malaysia acknowledges the government’s ongoing commitment to fostering inclusive growth, particularly through strategic infrastructure initiatives and sustainability measures outlined in Budget 2025.
Bank Negara Malaysia’s decision on the Overnight Policy Rate What happens if Overnight Policy Rate (OPR) is adjusted higher? When OPR is increased, everyone who’s
Until today, I still have friends who continue to think the Malaysian economy is collapsing soon. I wonder what would they really do if that happens. Get an opportunity to buy great assets at super low prices? Property in a popular neighbourhood at the price of a not popular neighbourhood? (yeah, sure…)
Central banks would always try to help the expansion of the economy. If the economy is slowing down, one possible way the central bank could encourage economic expansion is to reduce the interest rate. This makes it less attractive to put the money into bank and people may choose to invest those instead. With a lower interest rate, the businesses may also take this opportunity to borrow money and expand their business. People may also think it is a good time to invest into property for example. So, reducing the interest rate is one such measure.
There are two sides to a coin. Well, it’s the same as interest rate too. When it goes up, people who has fixed deposits will rejoice because they will earn a higher return on their savings. Well, at the same time, these same people will also have to pay higher loan repayments because the interest rate has risen. Perhaps the worst would be people without savings who could not earn a higher return but has to start paying higher monthly repayments every month. That’s not too good.
Bank Negara Malaysia (BNM)’s Annual Report 2021, Economic and Monetary Review 2021 and Financial Stability Review for Second Half 2021
Inflation is a worry. Economic growth is compulsory.
Bank Negara Malaysia maintains OPR despite increasing inflation
Bank Negara Malaysia’s OPR decision. Up, Down or Stay the same?