After maintaining an all time low Overnight Policy Rate (OPR) Level of 1.75% for two years, Bank Negara Malaysia (BNM) has decided to increase it to 2.00% earlier this month.
This is a huge deal, as the OPR determines the interest rate for banks that lend each other money overnight. The higher the OPR, the higher the interest rate and the more expensive it will be for people to borrow money.
In property and real estate terms, a higher OPR means less people can take out home loans. And this will impact sales.
Since the Covid-19 outbreak, BNM has reduced Malaysia's OPR to 1.75% to support our economy. But with both global and domestic growth steadily improving, BNM has taken the steps to match Malaysia's OPR to current market conditions.
Read more about the OPR's increase in BNM's Monetary Policy Statement from May 11th 2022!
Wanna know exactly how the OPR affects property and real estate? Check out this super guide by PropertyGuru.