UMNO YOUTH chief Datuk Asyraf Wajdi Dusuki has cautioned that an increase in the overnight policy rate (OPR) by Bank Negara Malaysia (BNM) would result in a higher cost of living and add to the people’s financial burden.
Asyraf said that the increase in OPR, although by a few basis points, would still have a significant impact on the people.
“A family with housing and other loans would see their monthly costs go up by hundreds of ringgit, should loan repayment rates be hiked,” he noted in a Facebook post.
“Traders, and even major industry players with business loans, would also be forced to increase their prices, thus burdening consumers.”
As such, Asyraf pointed out that the Government’s justification that raising the OPR would keep inflation low is “inconclusive” and said that the Government must look at the matter from a wider perspective as to how to face the economic downturn without directly channelling the burden to the people.
“This is not the right time to consider removing subsidies, floating ceiling prices and raising the OPR because it will directly raise the (cost of living),” he remarked.
Asyraf further noted that the Government should stimulate the economy by increasing its spending to improve infrastructure, attracting investments, simplifying business affairs and procedures, creating employment opportunities and not taking any measures that could cost an increase to the people’s daily expenditure.
“With Malaysia transitioning to the endemic phase of COVID-19, industry players, businessmen and ‘regular’ Malaysians are still in the midst of recovering and improving their economic situation,” he added.
At its meeting today (July 6), the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to increase the OPR by 25 basis points to 2.25%.
The ceiling and floor rates of the corridor of the OPR are correspondingly increased to 2.50% and 2.00% respectively. – July 6, 2022
