12% only ark? I tot it was 14%. Coz the fd rates went up to 12% or something the last time i remember....was too young not too sure, but the fd was at 12% at one point.

The worry that BLR will go up and down over the long term, is why Islamic Financing with its fixed "profit" rate, has been gaining a lot of interest (pun intended).
When you consider, most people take long term loan (e.g. 30 years term), BLR can swing up and down, economy can swing up and down. Your income can also gyrate during these times...
From past few decades, the economy has been in roughly 10 year cycles,so for ppl having 30 yr loan, need to consider that every 10 years whether can keep up their monthly payment.

Those who makan gaji, their company they work for can go bust. Those in business will feel the downturn even more. Of BLR go up, spending will go down. Those with loans will suffer, and those without loan will hesitate to take loan (cos interest so high)....talking about effects of recession can fill up a whole book...haih...

Dont think the BLR will be increased to 12%

most banks now have home loan rates capped at around 10%

Wasnt an announcement on the BLR supposed to be on Jul 25? I didn't hear anything so shouldn't that be good news?

confirmed no changes. announced by gov yerterday.

Wow 12% is really high. I guess can cope but maybe negotiate to lengthen loan period so that got some breathing space.

Yeah.. saw in news.. But you know our gov right. The day before fuel naik harga.. say wont rise up the price.. but last minute say.. Kita Tak boleh subsidi lebih naik by 0.74 sen liao. Haha.. Hope that won't increase too much or not have to pay through my nose for house installment.

@vincentlee,
Yeah.. I don't know if we realli can trust OUR government - plus, it's no increase for now - we realli wouldn't know what would happen 6 months from today

BLR will not reach 12%.

(Current) Government has stated its preference. Economic growth will be maintained at the expense of higher inflation.

You will never have to worry about BLR reaching 12%.

http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=1664
Based on this assessment, the Monetary Policy Committee has decided to keep the Overnight Policy Rate unchanged at 3.50%.

if, the blr reach 12% or even 14% which claimed by someone, i will be the first one to declare myself as a bankcruptcy. ok, lets make it simple, if you have a property which is on mortgage loan, especially from PUBLIC BANK, and you wish to revise your current lending rate, perhaps, you should seek the advice from the senior loan officer, and you will find the outcome.

u can never trust the government promises now!!!

the damn BLR better go up because I spent a lot of effort locking my rates at 5.5% for 8 years, thanks to rumours of BLR rising. Now i m bloody paying extra 0.7% (taking BLR -2.2%, BLR=6.8%)!!!! No fair man!!!!

jacc, don't worry, sooner or later it has to go up. i doubt our blr will be maintained this low for the next 8 years.

many central bank around the world have increase their interest rate to clamp down on inflation, will there be problem if we dont raise rate, like people moving money out to other country that have better rate?

according to geoarge soros, a recession is coming which is worst that the deep depression happened in 1930s. but he say it may affect other regions and it may not. depends on many factors such as oil, us/euro/reminbi dollars, china economy and so on

one thing i find interesting, despite economy is becoming bad, ppl still buy unit trust or investment link, the economy not good, and they still think they will get high returns. God bless them indeed

go read his latest books, quite interesting.

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Added on August 2, 2008, 1:26 pmjapan reduces its interest rate to 0% before. Federal reserve also did that before. now see what happen to their economy ?

Credits become so much more and ppl tend to spend more. Ppl spend more means high inflation. Rules become more lenient, meaning bankers can do anything they want. All this years, as many can see, alot innovative products or funds has appeared. So is the numbers of new markers for investments.

The recent maybank takeover of other banks show that they have the power and can do what they want. but of course now the BNM want them to stop it or reduce their shares on PT.

Despite the oil price per barrel have come down, I heard that oil will come up again becoz winter is coming. Winter means more oil usage.

This post has been edited by wingcross: Aug 2 2008, 01:26 PM

ahhh scary. A recession worse than the 30s? That was already practically rock bottom... Malaysia will not be immune if major global economic crisis hits... It makes one wonder if one should purchase a home to ensure one has a roof over their heads before it happens or wait and see if prices hit rock bottom and buy then.

Aihs... If interest rate goes all the way down to 0%... I am not sure what that would mean for m'sia but seriously, could that happen here? Different countries have different economic strength and weaknesses no? If someone had studied economic histories of many many countries then maybe it would be easier to come up with a possible analyses of what we can expect.

Maybe best to change RM to stronger currency to maintain value of our $$$? :/ I wish there was a clearcut answer.

that is one way of doing it, raising rate and allow RM to rise, but this all depend on what the government plan is.