http://www.theedgemalaysia.com/business-ne...eplace-blr.html

PFR to replace BLR

"It stressed that the proposed changes would not have an impact on effective lending rates charged to retail borrowers. Effective
lending rates are determined by a range of factors, including the bank’s assessment of a borrower’s credit standing, it pointed out.

The new reference rate will be used for the pricing of new retail loans and the refinancing of existing loans after the effective date of the
new framework. Existing loans will continue to be referenced against the BLR."

BNM is encouraging bankers to setup the rate looking into their operation cost and other attribution. the way is many different banks will have different ways in managing their resources and cost varies.

banks with much surplus in cash flow will lead the way. that eventually depriving other banks by giving more attractive loan new packages. as an outcome there will be mergers and acquisition in later time. sooner later consumer will have less choices to go about with loans. whereby the PFR moreless encourages monopoly.

by that time Tan Sri Zeti would had jump ship...

Better Refinance to fixed rate packages.

I am interesting to know PR1MA house buyers go with BLR or PFR?

Actually they have to pay more interest in long run and lots of T&C. With that cost to by stripped version house, look for old house will be better sometimes.
Like my mother just bought a 30 years old house for rm22000, spend another rm20000 just to recondition the house. Total cost is just rm42000 and way cheaper.

what is PFR?

RM 22K house !! which kampung ??

U mean RM 220K ??

Seremban, Rasah Jaya. Bought from the owner direct. If buy from agent is about rm80000.

BLR increase will not impact the BBB mode now. Buyers still can absorb BLR increase.

A Banker from HLBB told me the BLR will increase on July..

When CPI drop, interest rate should drop also right?

Yes, when CPI drops, inflation rate drops, interest should drop too. Read here for more explanation: http://www.investopedia.com/ask/answers/12...elationship.asp

i don understand.. it know me.. i don know it..

KUALA LUMPUR: Bank Negara Malaysia (BNM) raised the overnight policy rate (OPR) by 25 basis points to 3.25% on Thursday, the first time since May 2011 with economists expecting the rate hike to address the potential rise in financial imbalances.
Alliance Bank Malaysia chief economist, Manokaran Mottain said the hike in the OPR was a "pre-emptive measure to prevent further disproportionate risk taking as well as reducing asset price misalignments".

"While the central bank in previous instances had preferred to make use of macro prudential tools in reducing asset price bubbles risks, the rate hike will likely deliver greater traction in averting any excessive leveraging activities," he said.

BNM said the decision was made at its monetary policy committee (MPC) meeting as the latest economic indicators pointed to continued strength in exports and private sector activity in Malaysia. It also expected Malaysia's overall economic growth momentum to be sustained.

"The floor and ceiling rates of the corridor for the OPR are correspondingly raised to 3.00% and 3.50% respectively," it said. "At the new level of the OPR, the stance of monetary policy remains supportive of the economy."

BNM said going forward, the overall growth momentum was expected to be sustained while inflation has been relatively stable.

"Exports will continue to benefit from the recovery in the advanced economies and from regional demand. Investment activity is projected to remain robust, led by the private sector."

"Private consumption will be supported by stable income growth and favourable labour market conditions. The prospects are therefore for the Malaysian economy to remain firmly on a steady growth path," it said.

BNM said inflation has been relatively stable as the effects of the price adjustments for utilities and energy continue to moderate. Demand driven inflation remains contained, it added.

"Looking ahead, inflation is, however, expected to remain above its long-run average due to the higher domestic cost factors.

BNM added amid the firm growth prospects and with inflation remaining above its long-run average, the monetary policy committee decided to adjust the degree of monetary accommodation.

This normalisation of monetary conditions also aims to mitigate the risk of broader economic and financial imbalances that could undermine the growth prospects of the Malaysian economy, said the central bank.

Alliance Bank's Manokaran said the MPC's decision to raise the OPR by 25bps was within expectation as well as market consensus.

He pointed out that since the previous MPC meeting in May, financial markets had been influenced by this expectation.

The ringgit rallied to RM3.172 against the US dollar on Wednesday, up 2.06% gain. At the close on Thursday, the ringgit was trading at RM3.182.

"In the meantime, the rise in OPR will likely improve Malaysia's attractiveness amongst foreign investors, leading to stronger capital inflows, lower bond yields and an appreciating ringgit.

"Looking ahead, we do not see the recently announced OPR hike to be the start of a monetary tightening process. At the new rate, the OPR remains accommodative of growth. In this regard, we expect the OPR to remain unchanged at 3.25% for the rest of 2014," he said.

Link : http://www.thestar.com.my/Business/Busines...-rate-by-25bps/

increased d...

the effect of increased BLR i think like this to rentals, business you renting and etc..

after the announcement of Blr, there was a short conversation between bearbearwong( BBW), Manchester United (MU), showtime (SH), gogo2 (gogo) , Zuiko (ZK) at a cafe shop. below are merely illustrative purposes and do not reflect the actual conversation..

BBW: eh.. eh.. ello.. ello brother MU so free to visit me? how are you?
MU: I am fine, no lar i purposely come to the shop unit i rent to you to taste your Singapor Char Bee Hon, drool.gif and also the tenancy expiring maa, going to renew.. i brought along bro SH also.
BBW: Very good, so fast tenancy end meh? sad.gif
SH: Dun waste time, fast bring your singapore char bee hon leh
BBW: Okok, wati bring 2 plates of Sing Ka Po char bee hon for these 2 boss. Brother btw i got news leh very in one..
MU: what news oh BBW? you bought 1 units of luxury condominium in Orchard Road Singkapore after frying so many sING -KA-po cahr bee hon? rclxms.gif
SH: hahaha
BBW: Walao eh.. brothers, you joking meh, linpeh KL high rise also cannot buy how to buy Singapore oh? Teasing me.
MU: Okok lor.. what news you have?
BBW: Eh you know, that Bank Negara sipeh Jialat lehh.. they just increase the BLR from 6.6 % to 6.85% wor..
SH: haiya relax lahhh, 25 basic points only.. 100k increase around RM20 monthly... keluar masuk starbucks already RM20 maa.. why worry
MU: oi, apalah you, me loan this shop 1.5 million wor.. rent to BBW also reduced rental coz rental cannot cover loans maa.. how much like that?
SH: Errr.. RM20 monthly for 100k, so 1.5 million is around (15 X RM20). Around.. 300 lor
MU: wah 300 ah monthly... i got few properties sumore lehh, luckily BBW rent this unit from me
BBW: brother, so how my rental rates? increase RM300 monthly ah? Bank negara want to increase on September another 25 points wor.. like that BLR is 7.1%
MU: Brother you sure or not like that very jialat, suddenly RM600... then i have to increase RM600 lor..
BBW: wah... suckk blood mehhh... taukeh how many Singapore Char Bee hon i need fry oh
SH: Ya wor... RM600 dun pray pray.. Toyota vios 1 unit gone
MU: Aiyo, BBW why so hard.. my rental RM600 only maa.. i also service the bank one.. is justified one for the increase...
BBW: bro, business bo good leh?
MU: BBW you got learn taichi before or not? Let me teach you... I increase RM600, you increase your Char Bee hon another RM0.50 each plate lor.. easy maa, you can profit too.. customer ask you say rental increase, they ask why rental increase, you say bank negara increase BLR lor..
BBW: Thank you bro MU and SH... good idea.. like that many other tings will also increase lor.. all sure take opportunity one maa.. car interest leh? personal loans?
MU: That one you chap sang... hehehe
SH: yum yum

on another table bro ZK

ZK: Oi, bro Mu u lucky lor got ppl rent, my unit bo lang rent suddenly need to fork out RM600 extra sipeh jialat.. mad.gif
MU: Investment maa... thumbup.gif
Gogo: Hey bros... apalah you guys havent calculated GST yet...6% next year leh

ZK,MU,BBW, SH: Jialat lorrrrrrrrr...

in this exercise rentals shall increase to cushion the BLR increase, and thus price related to it will increase further..thus the buying powers of purchasers further deteriorate , with current condition subsales already so low, with this coming in and rental yields failed to cover loans and further making the range to cover loans bigger causing investors to fork out more money to service loans.. low end flippers might face problem if bank negara increase again after 2nd increase, after GST.. more bleeding.. as we can see.. units are not sellable..

good good ...sell it to me...im full loaded of bullet...can pm me...i will give u a very "good" price....time for me to collect setem...semenyih, kajang, sg long, bangi...not interested...

10% dp, hike in blr, gst what else under bnm sleeves?

rental gonna be serious business yo

This post has been edited by rachel_xxx: Jul 10 2014, 09:03 PM

mana pergi, nak pergi mana, BLR will increase again in Sept , now dunno will 3rd increase before GST or not..