It is every country central bank monetary policy to use the interest rate to expand or contract the money supply in the market. In general when there is too much money in the market and causing demand pull inflation, central bank willl increase the interest rate to reduce too much money in the economy to counter the inflation. Central bank will do the opposite of reducing interest rate when too little money in the market to encourage spending. Firms will invest in capital goods when cost of borrowing is low.

With the GST impact, the inflation rate will go up eventually. And this will lead to cost push inflation. With depreciation of ringgit, cost of import of finished goods will be high but it will help our export provided that our raw materials or compoents are not imported from overseas. GST impact, inflation, exchange rate effects will determine will BNM move up or down the OPR. If market economy is contracting, BNM may continue with its OPR to monitor the market.

Proton first quarter sales was dropped by 50% and this and other leading indicators do reflect accurately Malaysia economy in the next 6 months, BNM most likely hold its OPR and may decrease OPR to stimulate local economy.

Externalwise, US economy is starting to recover with its QE policy and FED may start to raise the interest rate in the second half. This will make the money flowing into the US and BNM has to look into ways to minimize the outflow by raising the interest rate.

Another way, government can stmulate the economy is by increasing government spending on infrastrucure projects etc. To finance all these government spending, foreign debt will go up and worsen by weak RM. Thereby pushing further down the Malaysia economy.

if 1MDB issue is real, international credit rating on Malaysia will be bad and it will impact further the economy.

My opinion is BNM will hold its OPR and only response base on domestic and global economy. As usual, the prudent and slow approach. My guess is OPR may reduce if domestic economy is shrinking. The banks promotion rate is 4% per year will be countered by 3% inflation. The real interest is only 1%. The weak exchange rate will make the actual worth even smaller.
The best thing is not placing FD in the bank but may be invest in overseas property hoping for currency and capital gain. Nobody has the crystal ball to tell the future.

This post has been edited by gsc: Jun 10 2015, 02:34 AM

All banks accept IBG as fresh funds as it already stated inter bank .....

I think we can ask the bank what is the policy of fresh fund definition. I went to a bank and the front counter staff said need fresh fund for promo FD rate. I told him why dont you check with your superior sitting at the back. His boss said okay, the money in my saving account can be considered as fresh fund.

Bank cant make the transfer without account holder approval or signature. I withdrew from my saving account.

As usual OCBC staff does not know their promotion well......thanks for your clarification otherwise.......just finished counting the money....

Interesting.....any update......not on leng lui........i mean FD....

Gold price has gone up about 4% compared to about 1.5 months ago. With ringgit performing badly, the gold price comparatively have strengthen. With Greece crisis and 1MDB debt which may pull down the ringgit.

I think Maybank has similar offer....but I prefer the Gold goin which is only available at certain May bank branches...compare to paper or passbook it is riskier but....holding the feel of holding real gold is different..

Deleted

This post has been edited by gsc: Jul 9 2015, 03:01 AM

Thank you....I was looking for Swiss Pamp and was told only KL is available...will check with UOB

Not sure this one reported or not .made a a placement last Monday

UOB merdeka promo

3 mths 3.85%
5 mths 4%
8 mths 4.1 %

Min RM10k. Valid from 1 Jul to 30 Aug,

UOB is having a different strategy in placement period, not the conventional 6 or 9 months..Took up the 5 mth promo which will be mature in Dec. Dec month usually have promotions from various banks...

Next target is Ocbc ...on the roller pen...

Thank you for educating the staffs. Hopefully it will be easy for me next week to make the placement.

Care to share where to register first in order to get the pen?

Tq

They had the promo a couple of years back...a person can recommend his/her spouse and can get RM300....

Thanks for your speedy response on the roller pen

Bbgoat said no eyetertainment...

You learn from Genx saying I speak your mind..

Went to Ocbc placed a FD for the roller pen. it seems that ringgitplus has 20" in trolley bag promo. t and c did not specufy new or existing customer. a good quality bag.

I did both and I received the sms. Without showing the sms, the counter staff will not allow to participate. Did not see any leng lui RM, guess she is in your imagination.

I got the trolley bag from Ringgitplus before. The body of the bag is weak and the wheels are fully exposed. Sure kena damage if use it as a check in luggage. This time Ringgitplus stated Barry Smith 20 inch trolley bag....wonder what will the quality be

No leng lui meant when I went in only saw the counter girl then go to payment, saw another counter girl. Didnt see any RM nor new girl.

last time they have an identification on the FD slip but this time I did not ask. Will check with them.

I think no promo for 12 months.

during placement bank will ask do you want to roll over with interest add on. with your agreement, you sign on the FD t and c. once mature , it will be renewed to the board rate.
my public bank FD matured in May and I have overlooked. it was renewed to board rate. Too busy to withdraw it and just leave it. Problem of having too many different banks and FD. That day also overlook HL. HL bank sent statement without indicating maturity date.