Interest rate is always one of the most crucial factors when it comes to property financing. The chart below shows the Base Lending Rate (BLR) for the past 20 years. Unlike what most people have in mind, BLR is not set by Bank Negara Malaysia. And some banks might have higher BLR than others.
Overnight Policy Rate (OPR) is set by Bank Negara Malaysia. To make the long story short, OPR is the interest rate one bank pays to another bank for overnight lending. BLR is pegged to OPR by a similar quantum. So, when OPR is adjusted, it will bring a chain effect to BLR, FD rates, Forex rates, short and long term interest rate, the amount of money and credit and other economic factors.
*Data extracted from blr.my
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