Not calculated like that.

Loan interest is calculated daily.
if you have outstanding loan let say 250k, it will x the new BLR (if) with daily calculation.

There are 2 situation can occur,
1. Monthly loan repayment increases based on calculation of the whole tenure of the loan vs its interest rate.
Aka previous if BLR 6.6% enable to repay off the 25 year loan with 1000 monthly, with the new increased rate, it become 10xx.

2. Monthly repayment still stay the same, 1000, but to finish off the loan take more than 25 years.

My view, unlikely BNM want to move the rate prior before GST implementation.

It may be one off 0.25% increase then no move until the GST implemented, as there are plenty of uncertainty factors
with GST implementation with potential one off inflation due to GST, and economy slowdown due to GST as well.

Yes, could be, but I still think BNM will see the impact of first hike before moving to another hike.

They want to see the debt being controlled, not to kill the economy.

25 basic point is 0.25%.

100 basic point is 1%, this is jargon using in banking/finance section.

Ty for the correction.

Those (hike 2 times news) are expectation made by analysts, it doesn't come from BNM who is holding the card.
So (2 times rate hike) is still not a baked in issue.

Last year already some analysts made prediction BNM going to hike rate even before 2014 started...

Current inflation is more about push cost factor, which rising interest rate won't able to "cure" such inflation.
So a push cost inflation won't be tamed by the rate hike.

Petrol price won't drop/stop rising just because interest rate being raised 3%, or 10%,

Since 1997, we have not seen OPR more than 3.5% (if not mistaken), already 17 years at around +/-3%.

25 basis point hike surely got some impact, but it is not like the end of the world or some scary beast that come from nowhere.

10 years ago, if bought a property with loan generally come with BLR + 0~1 %
Now home loan with BLR -2%,

So, even with the rate hike of 0.5%, current loan borrower still "enjoy" way cheaper rate than previous borrower.

Home loan interest rate out there either quoted in BLR +/- or Klibor + x%.

When BNM raised the OPR, it will affect the BLR and Klibor.

There is no such thing of old loan doesn't affected by rate changing unless the loan is fixed rate in the first place.

Bank doesn't bother to adjust the monthly repayment, doesn't mean one is not affected by higher rate, bank charge the interest rate based on your home loan stated rate, which is either BLR +/- or Klibor, which means instead of finish the loan at 25 years, it needs more time to clear up the loan due to higher rate.

Look at your statement of home loan sent which stated clearly the outstanding amount, interest charge etc.

OPR generally being revised after scheduled BNM meeting, which is July 10 for this month.

You see BLR -2%, -2.4%, is because of excess liquidity in the financial market, due to QE, and loosely monetory policy generally.
With Fed tapering and end of loosely monetory policy, the negative figure won't go deeper, but normalise to norm, instead go to -3%.

Another reason it becomes -2%, -2.4%, simply because BLR has basically stop working as its function as benchmark for bank borrowing cost.
Borrowing cost of bank is basically based on 3 months Klibor, that's why a new framework of loan rate is proposed by BNM, and many banks start with home loan based on Klibor rate.

When OPR revised upwards, so does the klibor generally.

So with the revised OPR upwards, there will be increased in borrowing cost generally.
BNM is aiming to reduce the pace of household debt rising, so it is not an interest for BNM to see banks keep on lending at cheap that's why we see OPR being raised.

Property up and down is largely due to economy situation,
If the economy is in recession, no matter how much the population born also no use, no money to buy during recession, property price cannot rise even you have 10 billion of population.

GDP growth 6%, export registered double figure increase, property price rising at fast pace, how the economy is not good?

Household debt 86.8% means the total loan taken by household is 86.8% to the GDP number.

GDP is the total output of the economy.

It doesn't directly mean 86.8% of household income goes to pay the loan.

For eg.
The total output of Malaysia economy is 1 trillion pa.
The total debt in the banking system taken by household (home loan, car loan, credit card loan, personal loan) etc,
is 868 billion.

You don't pay off the debt 868 billion in 1 year straight away, right?

868 billion of loan, you need to stripe it out how much the monthly repayment figure, as well as derive the household income, before can conclude a household currently how much their monthly income need to commit to service the loan.
But a higher ratio of household debt indicator high commitment ratio to their income.

Household loan ratio to GDP is a good indicator the economy system is highly leverage or not.

As how much the income can be made by household or individual is dictated by how much your economy output is.
Once the debt exceed what your output (GDP)/income can be for the whole year, already indicated the household is highly geared, but it doesn't mean it must turn into NPL in the future (but it does indicated high risk to be), as plenty of factors are affecting the future outcome, from interest rate, inflation as well as economy growth that potential normalise it back.

This is not a U/D topic,
Please head to the UUU/DDD topic for kopitiam talk. Ty
https://forum.lowyat.net/topic/3259380/+1640