BANK Negara Malaysia hiked the overnight policy rate (OPR) by 0.25% on Wednesday for the second time in the past year. This has now increased the effective borrowing interest rate to be paid by consumers.
The reason cited for the move was to keep inflation (rise in prices) in check by lowering consumer demand. The argument makes sense in theory, but in practice the hike will negatively affect the housing market in two important ways.
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