The first interest rate hike for quite a while announced by Bank Negara Malaysia last week did not dent sentiment both on stocks and as several analysts said, spending in general.
It was expected as given the raise in the overnight policy rate (OPR) was just 0.25 per cent, and from a historic low of 2 per cent, the hike was insignificant. But whether Bank Negara will stop at that is another question altogether.
Banking stocks, as anticipated, responded well as the increase means better interest margins for banks but they were quick to assure customers that the OPR remained low compared with the historic lows in early 2009 when keeping interest rates low was made one of the strategies to face the-then severe economic downturn. Read more
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