I heard rumors of BLR is going to increase. Currently the amount is 6.6%. I do rough estimation if there are 1.0% increase. you keep on paying the current rate. your loan tenure will extend to another 2 years.

for example there are a time year back BLR 5.5%. now is 6.6%. what will happen if this keep on increasing. now with rumors of GST going wild. the rapid hike in cost of living. think of it if BLR increase further. what is the implication.

This post has been edited by toh2020: Jan 16 2014, 06:10 PM

it has been discussed in many other threads.
use search function.

where did u hear this news from? BLR is bound to increase sooner or later

i heard it from many ppl discussing at kopitiam. even also market places too. not forgetting housing developers sales at supermarkets.

well i searched through discussions. the happening does not corelate to current action by our beloved ruling govt. that is with implementation of GST. not forgetting rapid cost of living we are experiences now. this taken into account recent fuel hike.

http://www.theedgemalaysia.com/in-the-edge...-in-report.html

BLR will definitely go up.
In fact if you check BLR history for the past 10-20 years, it has been going up and down according to the economy, it was never static.

I heard BLR will reduce to coincide with recent reduction in kangkung prices

See Attached.
During the 1997,1998, 1999 when the economy is real bad, BLR was sky high.



This post has been edited by robert82: Jan 16 2014, 05:53 PM

you are right on track man. ballooning household debts could lead BNM raising benchmark interest rates.

we know well our govt always ask supplementary budget above allocation. which a bad sign for our economics.

to my experience when BLR goes up. it hardly goes down.



This post has been edited by toh2020: Jan 16 2014, 06:01 PM

do you have data from 1980 - 1988. i heard also many said there are mid year crisis in the 80's decade. many ppl are out of job and recession follows... thanks.

the only worry everyone discussing is 2014 - 2015. there will be a revision by BNM on current BLR of 6.6%. the OPR also be revised.

http://www.blr.my/Historical%20BLR%20Graph.htm

thanks man, the figure says it all mid 80's decade crisis to be exact.

The recent devaluation of ringgit & sky rocket good price, don't think BNM can further delayed rising BLR unless they wanna another crisis.

Rofl

we wishes BNM not to raise the BLR nor delaying it.

when times are desperate and there are shortage in cashflow. BLR increase is beneficial. in a way they banks increase their cash reserve for loans. it encourages saving when ppl knows bank are offering good FD at 7% - 10% per annum. in order for banks to repay their depositors with sustainable profits. they needed to charge higher lending rate on loans more than FD rates.

2014 is bad year most ppl will be tightening their belts due to many uncertainties. well drastic measures comes to drastic action. eventually BNM will increase the BLR due to preassure from many quarters.

so it boils down to how the ruling govt manage the nation financial affairs. with the ever increase in cost and the drastic need to supplement budget. this is danger for house owner, businesses and investors.

the thing is when the owner cannot paid up. they financial sectors involved have rights to forclose their properties/commercial premises and sub-sale with auction. ppl will get laid off from thier jobs. multinational companies will move away from our beloved malaysia. more bankcruptcy that comes along with NPL that inturn affect the banking sectors ans socio economics of the nation.

it is also an acid test for najib's administration. hence we should look forward what's next in 2014. the discussion should be base on current real time issue how it will eventually affect us all.

You people probably too young to remember

That was the time when ASEAN currencies were under attack. Value of RM drop like mouldy peanuts.

One of the defense method is to increase the interest rate high-high to make the RM attractive.

The finance minister used this method. That why got spike in rate. At the peak it was almost 12%, if I remeber correct.
The rest is interesting history.

This post has been edited by Fazab: Jan 16 2014, 09:18 PM

Our ringgit is badly devalued now, Singadollar already at 2.6 if nothing been done late 90's will revisit, if currency keep only falling many investors will cabut.

BLR is definitely expect to increase, just matter of time.

BTW no need yi lou mai lou, jual minyak, we wasn't born yesterday, we know what happened in late 90's.

Just for fun-lah. No need to nitpick. Or will really grow old fast-fast.


What happening now is our own doing, so to a certain extent can control, up the BLR a bit a bit.

What happen in 90's was an concerted attack. No chance to do anything. Just open eye watch people die.

The after effects will be same, BLR goes up, bubble burst, but will be less drastic, less painful.

of course lar we got so many foreigner working take our monies back home. sure devaluate one. to them they just go back homeland enjoy.

for the locals will have to bear the impact.

what will happen if BLR increase? bank will change the monthly payment amount? or extend the loan tenure?