Social media users cry foul over OPR increase
PETALING JAYA: Social media users have cried foul over Bank Negara Malaysia’s (BNM) decision to raise the overnight policy rate (OPR) to 2.25% today. Several netizens vented their frustrations as the raise in the OPR comes at a time when the prices of goods and the cost of living are…
PETALING JAYA: Social media users have cried foul over Bank Negara Malaysia’s (BNM) decision to raise the overnight policy rate (OPR) to 2.25% today.
Several netizens vented their frustrations as the raise in the OPR comes at a time when the prices of goods and the cost of living are on the rise.
Facebook user William Kee noted that those with housing or business loans would suffer further.
“Recession is going on, (people) can’t even sell off (their) houses now,” he said.
Another netizen, Edward Kong predicted more “suffering” for the rakyat. He said the “incompetent” government was entirely to blame.
Twitter user @VokalKita said BNM’s decision was untimely. “Covid-19 cases are resurging, living costs are increasing and uncertainties in the global economy still linger. Social impacts are imminent and will soon affect the economy and even politics.”
Another user, @sathishwaannair, said it was likely the OPR would be raised again this year, with another user, @datukhensem, predicting BNM would do so in September.
However, user Adr Mpa, said the hike in interest rates was needed to control inflation as without it, inflation would spiral out of control.
“Hiking interest rates is meant to instil fear in the people to control their spending but the worst is yet to come for the country’s economy as many continue to spend without concern.”
The social media user added that every 25 basis point rate hike would increase monthly loan repayments by about RM70-100 for an average property.
“BNM is expected to raise the rate five times, so that’s an extra RM350-500 the average person will be paying per month.”
In a statement issued after the central bank’s monetary policy committee (MPC) meeting today, BNM announced it had raised the OPR by 25 basis points (bps) to 2.25% from 2%.
In May, the central bank raised the OPR to 2% from 1.75%, reportedly the lowest on record, following a 25 bps cut in July 2020, citing the severity of the global economic slowdown as a result of the pandemic and the contraction of Malaysia’s economic activity. — Free Malaysia Today