To anyone who is interested, BLR is not at its historical low. A few years back it was actually at 6.00%, so u can say that the BLR is already on a rising trend although it has stood at 6.75% for quite some time already.

Raising Interest Rate now would effectively caused an imaginable horror to everyone as if petrol price increased is not enough.

How many people 'refinanced' their loan for more loans? How many people seek out personal loan or buy new car or buy new investment house? Cheap rates draw out more people into debts and if these rates changes, there would be a chaos in the debtors' life.

The majority of GDP growth is coming from consumer spending. Higher rates mean bye bye.. cheap loans... and GDP growth until it kinda realigned itself again.

eric.tangps,

<<Raising Interest Rate now would effectively caused an imaginable horror to everyone as if petrol price increased is not enough.>>

Not everyone. For people that save 50% of their gross income, we are WAITING for this disaster.

Dreamer

From what I heard, BLR will increase further and it would be anytime soon. I hope this rumour is not true but car loan interest have increased somehow.

If inflation pressure remained, yes, it is possible that ourBLR will increase.....well, we hope not!

If they increase then we should "thank" Barisan Nasional for bringing an extra problem to us.

rumour from my fren who is a branch manager of certain bank. BLR will be increased to 7% next month

So increment of 25 basis point is 25/675 * 100 = 3.704%. What is the percentage of fuel hike?

erm...just one question to those who thinks BNM will increase the interest rate.

Q: For what reason would BNM increase the interest rate?

For the 1997 financial crisis, there's a good reason for BNM to increase the rate to hell's level. But as for the 2008 financial crisis, it's different from the said 1997.

car loan interest rate will be up soon, news quite confirm.

BLR increment will have to wait till next BNM meeting in july.

In this country, if we can spent millions to send 1guy away from earth to prove that malaysia boleh while we could have spent to build more free roads n give scholarships to more students, nothing else can't happen.

from our past history, our government can approve anything for any goddamn reason.

According to my sources working in the bank, they said their banks have stopped giving out loans with fixed rates. That means, they ANTICIPATE that the BLR will increase SOON. Maybe as bad as in 1998.... ) Let's pray...

Looks like there a number of economists (not investors) among us, e.g. doing the right thing vs doing the thing right?

This post has been edited by oumind: Jun 19 2008, 11:05 AM

Pray for? I'm sure some will pray for it to happen sooner and others will dread it

By next monday, 23.6.08, our HP interest for puchases of new or second hand car will be adjusted upward. Once HP interest is up...I won't be surprise to see our BLR is going to follow soon..

Why are they making us paying more for every single thing?!

it's business, they need to take care of their own profits 1st.

Are you sure it will happen next week? My fren was asking about it, cause he want to get a car by now if it is true. Where you got the news?

at least toyota confirms that...

I am curious to see how a Rate hike can damage the most people. It will do more damages than actually helping the poor to fight the inflation. Especially those who barely save money in bank, they certainly wont benefit much with a better FD rates, instead their LOAN will get bigger.

I still think the Gov should have more tax reduction in any field or any kind of incentive skim to help the poor than raising interest.

Raisin rate will cause people save more. Arent we have a lot of cash sitting in bank now?

it is true. I have verified it with my banker and is confirmed. Ask him to ask his car dealer, they will tell him the same.

---

Added on June 20, 2008, 3:52 pmNormally BN up interest rate to soften the inflation pressure - interest rate up = demand lower = price drop.

Looking at the inflation rate the world is facing now..i am prepared for the increase of BLR. I am just hoping the damage will not be so severe! If we can recall, we have interest as high as 12% back in year 1998!

This post has been edited by Jean72: Jun 20 2008, 03:52 PM