KUALA LUMPUR: Bank Negara Malaysia (BNM) is formulating a new interest rate framework for the measurement of the Base Lending Rate (BLR) next year to further enhance the country’s financial system.
Governor Tan Sri Dr Zeti Akhtar Aziz said BNM would issue a consultative paper outlining the new reference rate framework to the industry in early January next year, as it needs to adjust and progress towards better serving the economy.
“Of late, there have been indications that the BLR as a reference rate has become less relevant. “It has therefore become less meaningful as a basis for the pricing of loans. Retail lending rates on new loans being offered by the industry are at a substantial discount to the BLR,” she told reporters after the launch of the Asian Banking School here today.
Zeti said the BLR is the key element in the financial intermediation process and needs to be improved in term of its efficiency, for the banking industry to continue to meet the ultimate objectives for its existence. – Bernama<align=”justify”>.
18 December 2013 – 02:33pm
The Overnight Policy Rate (OPR) from Bank Negara Malaysia is reference for banks in BLR adjustments, but there might differ from bank to others bank. At the global money market down turn, BLR will get lower and if the money market on uptrend, it will correlation upward. It is wisely and timely to consider take up mortgage loan and start to own your property at the lower BLR as current.
From the record, it shows that the highest BLR Malaysia ever has is 12.27% in year 1998 and the lowest BLR is 5.55% in year 2009. The average is 8.1%. Probably you can use this to justify whether it is better to take the fixed rate loan or floating mortgage loan (BLR +/- x% ). Below table shows the Malaysia Base Lending Rate (BLR) record from year 1989 to year 2011.
|2011||6.60||Adjusted May 2011|
|2010||6.30||Adjusted July 2010|
|2010||6.05||Adjusted May 2010|
|5.80||Adjusted March 2010|
|2008||6.75||Adjusted March 2009|
|2000||6.75||>> More BLR Historical Data|