Bank Negara moves to signal low interest rate days are over

AllianceDBS Research chief economist Manokaran Mottain, who does not expect a rate cut this year, told StarBiz any move in that direction would depend on the economy

PETALING JAYA: The 25-basis-point (bps) hike in the benchmark overnight policy rate (OPR) to 3.25% by Bank Negara signals that the days of low interest rates are over.

Although analysts see a 25-bps hike as having minimal impact on private consumption, a hike in the OPR will benefit banks, as they will adjust their deposit and lending rates higher.