With the recent news about the implementation of GST, BLR and any other new enforcement in the country, take note also that the Bank Negara Malaysia (BNM) has decided to increase the overnight Policy Rate (OPR) from 3.0% to 3.25% in the Monetary Policy Committee (MPC). In other words, OPR means an increase in the pricing loans for consumers.
Both OPR and BLR already in effect since 10th July 2014 but how does it affect you, as borrower/ consumers?
OPR actually refers to an interest rate at which a bank lends to another set by the Bank Negara Malaysia. It is in fact detrimental to our economic growth, employment and inflation as it served as an indicator to the progress of the country’s overall economy and banking system.
Both OPR and BLR and deposit are actually inter-related. Why? One may ask. This is because once OPR increase, BLR and deposit interest rates will follow suit too! Let say, if you are a borrower, when the interest rate goes up, you will need to pay more in terms of installment or if you refuse to change your installment payment. But if you are a depositor and you have a fixed deposit or saving account with banks, it means your fixed deposit and saving account dividend will be increased too.Fixed rate loans will also be increased in your favor if interest rates go higher.
