Monday, June 16, 2008

Higher Interest Rate in July?

Updated 4pm:
I just called one of the bank in KL, the official said that there are rumours in the market saying interest will be increased. Personally he think that it is not likely to increase in the near future, however he warned me one thing.

"Even what the ministers said also can not take it as final!"

He try not to use the words "can't be trusted" and he laughed!

Malaysia is indeed famous with liars & lying.
Another Damn!

Older Post:
If that is true, i think many people will die standing especially with the old housing loan package that still charge at BLR + 0.xx%. With current package of BLR - 1.45% (some up to 1.65% or 2%), the old package that happended 4 years ago seem is very high (in fact can "kill" you).

Since the new petrol price took place, banks have been revised their package, for example revised their rate from BLR - 1.65% to BLR - 1.45%. If in August 08 that Government again increase the petrol price, i believe the rate will further adjusted below BLR - 1.45%. Although Pak Lah won't increase in this year anymore, but can they be trusted since they lied to us, not once but many times.

Last week, actually i learned from my sister in-law who work in bank that interest rate might increase in August. But seem like Bank Negara most likely will do it in July 2008, next month as the way to curb the inflation, according to her.

For my housing loan at BLR + 0.35%, i am currently pay my installment at Rm792/mth with monthly interest being charged back at ~ Rm 720/mth. What will happen if BLR increase further, will the interest that charge back is more than what i pay monthly? Of course i knew this problem since last middle of the year, and i have started to pay more since than, few hundred a month extra, to race against the interest as well as time (to shorten it). My 2nd option is of course appeal to my bank to change the rate to current rate or refinance to other bank with penalty RM8k (breach the lock-in period of 5 yr). If my bank refuse to reduce, i will tell them to fly-kite lah.

Is Malaysia ready for high inflation and high interest rate? Most people will suffer kaw-kaw i believe! Damn!


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