Overnight Policy Rate increased by 25 basis points to 3.25

There is another good news for property investors this afternoon. Bank Negara Malaysia announced that the OPR has been increased by 25 basis points to 3.25. The complete announcement can be read here. Soon afterwards, banks are going to increase their lending cost.

This also means those who like to speculate instead of investing for a long term will receive their shock when the monthly cost increases while it is harder to sell their speculated property. However, the OPR increment will also affect those who plan to buy for staying. They have to recalculate their plan and modify accordingly. This means lesser supply for new homes for rent. For property investor who already bought their properties, this means the rental fee is going to increase provided the economy growth stays the same.

Anyway, the OPR increment is important to ensure money supply is sufficient for the whole economy activities and stability. There are signs weak economy indicators in USA and Europe. If USA economy crash like in 2009, the FED may reintroduce their stimulus package as before. Thus, the same cycle may repeat again. But, does Malaysia's fundamental still the same as before or worst?