What is the Overnight Policy Rate (OPR)?

Overnight Policy Rate is the interest rate at which a depository institution lends immediately available funds (balances within the central bank) to another depository institution overnight. This is an efficient method for banks around the world to practice ‘Accessing short-term financing’ from the central bank depositories. The interest rate of the OPR is influenced by the central bank, where it is a good predictor for the movement of short-term interest rates.

As BNM (Bank Negara Malaysia) suggests, the OPR was left unchanged throughout the 2nd quarter of 2008 (Apr, May, June) at 3.5% and is projecting inflation to continue to increase all the way to mid of 2009.

Malaysia 2008 Base Lending Rate BLR Unchanged

With the OPR unchanged, interbank rates for all maturities were relatively stable during the quarter. In terms of lending rates, the average Base Lending Rate (BLR) remained unchanged during the quarter, while the Average Lending Rate (ALR) softened to 6.08% as at end-June. Deposit rates remained relatively stable during the period. -BNM

Financing activities in the 2nd Quarter remained strong and supports domestic economic activity. On a nett basis, banking system loans and PDS outstanding expanded by 14.1% at end-June. Loans outstanding increased by 11.7% at end-June, reflecting increases for both the business and household sectors, with loans outstanding to these sectors expanding at 14.4% and 8.9% respectively.
Loan applications, approvals and disbursements remained at relatively high levels, with continued broad-based financing to productive sectors of the economy.

The mortgage and financial consulting services are offered to you FREE of charge without any obligations. Kindly contact us or email to consultant@malaysialoan.com.my if you need any enquiry. Thank You.

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