PETALING JAYA: Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) today slashed its Overnight Policy Rate (OPR) by 25 basis points to 3%.
The move is seen by many as a proactive measure to address an economy which is slowing.
Malaysia’s economy grew by 4.7% in 2018 and the government maintains an official growth projection of 4.9% in 2019. However, actual growth could disappoint as the economy faces numerous external headwinds and high debt levels.
One of the most critical external factors which the Malaysian economy is facing currently is the impact of the trade impasse between the US and China. Commodity prices such as palm oil are also on the downtrend and this has a telling effect on the economy as palm oil contributes 5% to 6% of the nation’s GDP.
Cut of .25% to 3% not enough lah
Make it a more deeper cut to 2% better
1. Lower interest rate will ease high loan payment for houses
2. Low interest also help give relief to Company debt obligations ...leading to better cash flow and profits
3. Low interest cut cost and make Malaysia exports even more competitive
So go ahead, Bank Negara, cut it to 2% boldly and stimulate the economy to the full
2019-05-08 00:15
IN MALAYSIA HOUSE PRICES STILL VERY CHEAP COMPARED TO MANY COUNTRIES
IN SPORE 1 ROOM APT BELOW 500 SF NOW SELLING OVER $1 MILLION SING DOLLAR
OR RM3 MILLIONS
SEE
https://amberparksofficial.com.sg/?gclid=EAIaIQobChMI_6PHh4uL4gIVjxWPCh2QmAXkEAAYAyAAEgK5n_D_BwE
2019-05-08 12:26
SEE NEW ZEALAND NOT A GOODS EXPORTING NATION HAS CUT RATES TO ONLY 1.5%
MALAYSIAN ECONOMY DEPENDS SO MUCH ON EXPORTS SHOULD CUT RATE TO EVEN 1%
https://www.thestar.com.my/business/business-news/2019/05/08/new-zealand-cuts-interest-rates-to-historic-low/
2019-05-08 13:02
dunnid compare singapore la.....compare klcc vs bangkok, manila, jakarta, vietnam...their price is super high....Malaysia is super cheap. Now is not house price high but salary low
2019-05-08 17:19
even Economist Nobel prize winner cannot tell u what is the most appropriate interest rate for Malaysia.........
2019-05-08 18:13
what we can say about OPR cut is that authorities are concerned about a weakening economy........
beyond that, it is anyone's guess.
2019-05-08 18:27
productivity or GDP per capita is one. For your information, our GDP per capita is 1/7 of Singapore's... Basically it means 1 Singaporean can be 7x times more productive than us Malaysian, what a shame.
2019-05-09 20:55
If you cut yr interest rate too much, ppl will be selling all their bonds because of lower interest rate. That's why central bank will not cut more than 0.25 basis points. If bond market is flooded, the price of ringgit will normally drop more against US dollar. Better for exporters, but bad for importers and politics.
2019-05-09 22:25
WHY PROPERTY INDEX DROP DESPITE INTEREST CUT TODAY ???
u are looking for stock market to behave in a certain predictable and logical way................from university u learn about stock market and economy and that stock market got predictive power.
well...I think your professors are wrong.
2019-05-10 10:13
No lah unker, university teach you efficient market, no way you can outperform or underperform the market index. Complete bullshit I say. The lecturer nearly got mad at me.
2019-05-10 19:00
newbie911
Why?
2019-05-07 23:22