I hope there will be another wave of USD/MYR 4.4x.

Nope. I dont think Banks can afford to cut anymore rates. Look at the FD promos..

Rephrase: Banks in Malaysia only

Bank FD promos doing as high as above 4.4% while the rates are getting more attractive. This means that banks are having issues getting cash(liquidity) depositors. Meanwhile bank are giving out majority home loan at 4.45% ??  These are not the effective rates of course but it seems that banks are operating perhaps in very very thin margin or no margin. This is why home loan have very high rejection rates.

Yes.. bank can reduce interest rates to stir economy. The last time. BNM only dared to reduce the SRR instead of OPR. Cutting down interest rates will have huge effect of bank's profitability. A few banks are already retreching. This is why a few banks already increased their BR/BLR on their own. Not to mention NPL is increasing in Malaysia at around 2%.

1mdb default is also another issue. Since this company's debt is guaranteed by gov , borrowing cost by our gov may go up due to credit ratings.

Just my opinion.

i don't think so.. a lot of loans still tied wif old BLR.. It will be interesting to see BNM reducing interest rates...it's like using steroid. Short term benefits and long effects.

Cost of funding for banks will lower across when OPR being cut.

Banks can issue bond at lower rate to get funding, instead of getting through FD promo.

So FD rate or FD promo rate will also go down when OPR is lowered.

If BNM cut OPR n Bank maintain current FD promo, v can expect Banks PBT to drop

There is no fixed rule that banks need to follow BNM rates, as long as not exceeding the ceiling rate, last time, yes, there is fixed BLR.

But when cost of funding is lowered across, if a bank is still stick to higher lending rate and higher deposit rate, then you will see depositors flock to the bank, while borrowers shy away from the particular bank, which in the end of the day, bank lose out in term of revenue, and higher cost of funding, which make the bank non-profitable.

Unless there is only one banks which is monopoly the market, then may be the bank can stick to own lending and deposit rate at their wish and ignore the

It is just like ordinary business competition out there,, if you do not follow the "market price, you may loose out business.

there are things that Banks can do however it will still be effected by major changes in OPR. Some banks have adjusted interest rates on their own a few times this year http://www.baserate.co/public-bank-hong-le...interest-rates/

Lower oil costs and subdued global price pressures enabled the central bank to cut its inflation forecast for this year to 2 percent to 3 percent from 2.5 percent to 3.5 percent, it said. Consumer prices rose 2 percent in May from a year ago.


Malaysia Unexpectedly Cuts Rate to Shield Growth as Risks Mount
Inflation forecast lowered to 2 percent to 3 percent
Economy set to grow at slowest pace in seven years in 2016
http://www.bloomberg.com/news/articles/201...-as-risks-mount

Malaysia’s $30 Billion Pension Fund Goes Long as Rate-Cut Hedge

Malaysia’s interest-rate cut is a “double-edged sword” as the fund’s existing portfolio is “in the money,” while new investments will probably be in instruments with lower returns, the CEO said. KWAP will be buying longer-dated bonds because “we see room for a further interest rate cut,” he said.
http://www.bloomberg.com/news/articles/201...-rate-cut-hedge

Can consider to 'short' as and when opportunity arises

U trust them?

Touch 4.036x

U.S. Seeks to Seize $1 Billion Assets Tied to 1MDB, NYT Says
http://www.bloomberg.com/news/articles/201...mdb-wsj-reports

U.S. Targets $1 Billion in Assets in Malaysian Embezzlement Case
http://www.nytimes.com/2016/07/21/world/as...ets-seized.html

U.S. Set to Seize $1 Billion in Assets Tied to Malaysian Fund 1MDB
http://www.wsj.com/articles/u-s-readies-pu...1mdb-1468987220

Sold some @ 4.04 to lock-in profits

Sold 30% n keep remaining 70% for rides

still at 4.03 MYR

btw related news

Oil turns positive as US crude inventories fall by 2.3M barrels: EIA
http://www.cnbc.com/2016/07/19/crude-oil-f...piles-fall.html

Gonna head north or south?

Touched 4.048 on 15m chart today. Dont buy/sell on what u believe in. Buy/sell on what the chart tells you

actually already touched 4.05 just now.. i think if it opens at 4.068 , the chances of going up is higher. there may also be slight retracement as got some resistance there