All the bank in Malaysia adjusted their BLR (Base Lending Rate) according to the Overnight Policy Rate (OPR) from the Bank Negara Malaysia, but anyway the BLR rate might be vary from bank to bank. Normally the BLR rate will fluctuated according to the condition in global financial market if during the down time or economy turmoil BLR will normally get lower and otherwise it will be corrected upward during the market uptrend.
From the record below, it shows that the highest BLR ever in Malaysia is set at 12.27% in the year 1998 and the lowest BLR recorded at only 5.55% in the year 2009. So the overall average BLR in Malaysia is at 8.1%. and it will be wise for you to justify whether it is better to get the fixed rate loan or floating mortgage loan (BLR +/- x% ). And it is advisable to take up the mortgage loan when the BLR is at the lower rate.
Below table shows the Malaysia Base Lending Rate (BLR) record from year 1989 to year 2012.
|2011||6.60||Adjusted May 2011|
|2010||6.30||Adjusted July 2010|
|2010||6.05||Adjusted May 2010|
|2010||5.80||Adjusted March 2010|
|2008||6.75||Adjusted March 2009|
Understanding Overnight Policy Rate (OPR)
Overnight Policy Rate is an overnight interest rate set by Bank Negara Malaysia (BNM) used for monetary policy direction. It is the target rate for the day-to-day liquidity operations of the BNM. Overnight Policy Rate (OPR) 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.
In Malaysia, changes in the OPR trigger a chain of events that affect Base Lending Rate (BLR), short-term interest rates, fixed deposit rate, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services which is the micro and macro factors on the economic. The BLR is usually adjusted at the time in correlation to the adjustments of the OPR which is determine by Bank Negara Malaysia (BNM) during Monetary Policy Meeting. via Wikipedia