Want buy for you and manutd?

Yes ma'am

is it consider biggest rate cut for the decade?

https://www.thestar.com.my/business/busines...d-25bps-in-july

Mean economic outlook is worst in the decade.

https://www.bnm.gov.my/index.php?ch=en_pres...ac=5045&lang=en

Monetary Policy Statement
Ref No : 05/20/01 05 May 2020 Embargo : Not for publication or broadcast before 1500 hours on Tuesday 05 May 2020
At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) by 50 basis points to 2.00 percent. The ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2.25 percent and 1.75 percent, respectively.

Global economic conditions have weakened significantly. Measures to contain the COVID-19 pandemic have disrupted economic activity across most economies. Recent indicators show that the global economy is already contracting, with global growth projected to be negative for the year. Financial conditions have also tightened amid elevated risk aversion and uncertainty. Substantial policy stimuli introduced by many economies, coupled with the gradual easing of containment measures globally, would partially mitigate the economic impact of COVID-19. Growth prospects should improve in 2021 with the expected containment of the pandemic.

For Malaysia, domestic economic conditions have similarly been affected by the pandemic. Widespread containment measures globally, international border closures and the consequent weak external demand environment will exert a larger drag on domestic economic activity. The Movement Control Order, while necessary to contain the spread of the virus, has also constrained production capacity and spending. Labour market conditions are also expected to weaken considerably. Economic conditions would be particularly challenging in the first half of the year. The fiscal stimulus measures, alongside monetary and financial measures will, however, offer some support to the economy. With more businesses allowed to operate under the Conditional Movement Control Order, economic activity is projected to gradually improve. The outlook for growth continues to be subject to a high degree of uncertainty, particularly with respect to developments surrounding the pandemic.

Inflationary pressures are expected to be muted in 2020, with average headline inflation likely to be negative this year, due mainly to projections for substantially lower global oil prices. Nevertheless, the outlook remains significantly affected by global oil and commodity prices, as well as evolving demand conditions. Underlying inflation is expected to be subdued given the projections of weaker domestic growth prospects and labour market conditions.

The financial sector is sound, with financial institutions operating with strong capital and liquidity buffers. Liquidity remains ample, augmented by liquidity injections by Bank Negara Malaysia. Since March 2020, Bank Negara Malaysia has provided additional liquidity of approximately RM42 billion into the domestic financial markets, via various tools including outright purchase of government securities, reverse repos and the reduction in Statutory Reserve Requirement. Bank Negara Malaysia stands ready to provide liquidity in the interbank market to ensure orderly market conditions, conducive to support financial intermediation activity.

With the decision today, the OPR has been reduced by a total of 100 basis points, complementing other monetary and financial measures by Bank Negara Malaysia as well as fiscal measures this year. Together, these measures will cushion the economic impact on businesses and households and support the improvement in economic activity. The MPC will continue to monitor the outlook for domestic growth and inflation. The Bank will utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery.


Bank Negara Malaysia
05 May 2020

OPR 2%, good time to buy?

Is it a good news for first time home buyer?

yes, interest lower

Good rate for those who really want to buy property.

at this, it is good for borrowers, cash out, stock market

Low interest rate is meant to encourage investment and spending. However, if interest rate is below inflation rate will erode purchasing power, less amount available for future investment, spending, etc, and risk tipping the country into deflation.

wealth is created from productive work; wealth created from debts is unsustainable and will eventually collapse.

This post has been edited by icemanfx: May 5 2020, 04:28 PM

Low interest rates does not cause deflation.

Deflation causes low interest rates.

Low interest is a product of deflation, used as a tool to drive consumption, spending and lending to spool up the economy resulting in inflation.

This may be on your economic book but not happened in reality like Japan.

By your definition/book, the country is going to or already in deflation stage.

This post has been edited by icemanfx: May 5 2020, 06:49 PM

My calculation is reduction of RM270/month for every RM1,000,000 outstanding balance.

Yeah, than later OPR go up, interest go up as well. It's good for existing loan holder, but those want to buy NOW, need to decide on future OPR climbing as well into their equations.

This is literally economics 101

Edit: there are many things that can lead to lowering interest rates. This is just one of the probable cause. As we can understand from the current outlook it is not caused by deflation.

You have nothing positive ever to say about anything no matter The outcome.

This post has been edited by Zwean: May 5 2020, 07:26 PM

For a 10, 20 or 30 years loan, borrower cant escape OPR going up and down.

Very true. Or get Islamic financing can solve this?

That is your economic 101. Perhaps you should add economic 102; when supply > demand, price will drop. One could only defy gravity temporary, and long term equilibrium always prevail.

Not everything is pessimistic. Actually, there are many opportunities outside the coconut shell. Unfortunately, those inside the coconut shell couldn't and unwilling to see.

This post has been edited by icemanfx: May 5 2020, 07:58 PM

Hmm, meaning try to get loan offer with lower spread rate?