At the Monetary Policy Committee (MPC) meeting today, Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) to 3.25 percent. The ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.50 percent and 3.00 percent respectively.
Summary of the monetary policy statement
Factors causing the economic downturn:
- slowdown in global demand
- fall in commodity prices
- decline in equity prices
The new OPR is expected to provide liquidity into the financial system.
Sustaining domestic demand is key.
MPC reduce the Statutory Reserve Requirement from 4% to 3.5% with effect from 1 December 2008.
You might want to read these too...
- OPR Raised Again
- Malaysia OPR Up Again to 2.75 Percent
- Interest Rate Kept at 3.50%
- OPR Remains at 2 Percent
- OPR Unchanged at 2 percent
- Petrol to be Reduced to RM2.45 per litre
- August Inflation Stands at 3.3%
- CIMB Introduces Money Multiplier
View Comments
RSS feed for comments on this post. TrackBack URL
Sorry, the comment form is closed at this time.
this mean that the BLR rate will be decreased also?
Comment by imDavidLee — November 25, 2008 @ 4:43 pm
Yup, as we are discussing about this, majority of the banks are adjusting their BLR downwards by 0.25%.
We will see majority of the banks charging home loan rates at 6.5%. Yet, we need to remember that home loan is not just about the interest rates. Banks are VERY GOOD with fine prints!
Comment by yowchuan — November 29, 2008 @ 5:03 am
I saw in the newpaper today, affinbank and citibank BLR @ 6.55% not 6.50% as what i'm expected.
Comment by dynn — December 1, 2008 @ 10:28 pm
dynn, the base lending rate for Citibank before the adjustment was 6.80%.
I am not sure about Affin Bank though…
Comment by yowchuan — December 1, 2008 @ 10:48 pm