Limited impact seen from Bank Negara's rate cut

Alliance Investment Bank chief economist Manokaran Mottain (pic) told StarBiz that the last paragraph in the monetary policy statement was a hint of what could be ahead.

PETALING JAYA: Bank Negara’s decision to cut the benchmark interest rate may have limited impact on borrowing cost as several banks in the country have raised their lending rates prior to the central bank’s announcement.

Experts told StarBiz that households and businesses servicing loan payments would still enjoy lower instalments, but the savings in their monthly repayments may not entirely reflect Bank Negara’s 25-basis-point (bps) reduction in the overnight policy rate (OPR).