Jun 10 2008, 10:02 PM
QUOTE(cherroy @ Jun 10 2008, 09:34 PM)
BLR is fixed at a ceiling level by BNM, currently 6.75%, yes correct. But the fixed rate can be changed from time to time by BNM depended on economy situation. Just for the last 2-3 years, economy is not moving in either direction, so the BLR is being left at 6.75% for this period of time but it doesn't mean future BLR will be the same especially current economy condition and inflation situation will have big impact on the macro-economy side.
So BLR is not fixed but fixed at a ceiling by BNM
and can be reviewed from time to time, normally when BNM hold meeting, (about a month plus for every meeting interval), only when there is emergency situation, then BNM will act accordingly which is same across various countries central bank or Fed Reserves.
I hope my explainatin is clear enough.
BLR is now up to the Banks to decide their own BLR. Since all Bankers is a member of ABM, it is normally decided at 6.75% p.a.So BLR is not fixed but fixed at a ceiling by BNM
and can be reviewed from time to time, normally when BNM hold meeting, (about a month plus for every meeting interval), only when there is emergency situation, then BNM will act accordingly which is same across various countries central bank or Fed Reserves.I hope my explainatin is clear enough.
BNM only monitors Overnight Policy Rate which is fixed at 3 point something as means to control the borrowing costs.
BLR low is good for those who borrow monies and not for the retirees/pensioneers or those savers as their FD Rate return is peanuts.
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