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Bank Negara raises key interest rate

Jan 26, 2018

Bank Negara has raised its key interest rate for the 1st time in about 4 years to 3.25%, from 3%.

Experts had already predicted the hike will arrive before GE14, and now expect housing prices to go even higher on speculation.

But the National House Buyers Association told Malay Mail it doesn't expect the hike to cause an increase in monthly housing loan repayments as it expects banks to balance the cost.

It's also possible some banks may choose to increase the duration of the loan, without affecting the monthly repayment.

Following the announcement about key rates, the Home Ministry says it will suggest to the government to lower the interest rates of housing loans.