In order to tame inflation alongside strengthening the domestic economy, Bank Negara Malaysia has recently made an announcement regarding an increase in the Overnight Policy Rate (OPR) from 2.75% to 3.00%.

Insight:

• The conversation on OPR Hike in Malaysia for the past 7 days garnered around 6.3K with 134.7K social interactions.
• The raises of the Overnight Policy Rate (OPR) can have various effects on consumers, businesses, and the overall economy of a country. The cost of borrowing money for consumers and businesses will increase, making loans and mortgages more expensive. Thus, consumers and businesses may cut back on spending and investment. This can lead to slower economic growth, as less money is being circulated in the economy.
• Numerous individuals have criticized the government for remaining silent on this matter, highlighting how the PH were assertively vocal about OPR during their tenure as the opposition. People have also mocked Prime Minister Anwar Ibrahim, asserting that he has been unsuccessful in sustaining the economy.
• Nevertheless, it is encouraging to see that a significant number of online users continue to trust the government and support the decision to increase the Overnight Policy Rate (OPR). They recognize that returning to pre-pandemic rates is a step towards economic recovery. It is essential for the government to maintain a balance between managing inflation and promoting growth, and this move seems to be in line with that objective.
• In conclusion, while there may be differing opinions on the OPR rate increase, it is important to consider the bigger picture and the long-term impact on the economy. The government’s efforts to stabilize and grow the economy should be supported by responsible financial behavior from the citizens.