Is it true that the recent interest rate increase will not affect the vehicle sales?.Read the full news from Bernama below.
INTEREST RATE INCREASE WILL NOT AFFECT VEHICLE SALES, SAYS MAYBANK CHIEF.
KUALA LUMPUR, July 19 — The recent interest rate increase will not affect the sales of motor vehicles, says Malayan Banking Bhd’s (Maybank) president/chief executive officer, Datuk Seri Abdul Wahid Omar.
Bank Negara Malaysia had on July 8 raised the overnight policy rate for the third time this year to 2.75 per cent.
Subsequently, banks increased their base lending rates (BLRs) and base financing rates, respectively.
Maybank raised its BLR by 25 basis points to 6.30 per cent.
“The interest rate increase is part of the normalisation process and there is a need for the country to have a real positive interest rate as the economy recovers,” he told reporters on the sidelines after attending the International Financial Crime and Terrorism Financing here Monday.
Abdul Wahid said this when asked whether the interest rate increase would affect car sales.
He said in terms of the cost of borrowing, the current rate was still viable and customers could still enjoy the minimum rate of financing.
Abdul Wahid said the bank was working closely with car manufacturers to make sure that the cost of financing was affordable for consumers to buy the car.
“We have a great working relationship with car manufacturers as well as distributors. Our business is to lend the money and their business is to sell cars, so it is important for us to have the package or deal that is acceptable for consumers,” he said.
National carmaker, Proton Holdings Bhd, however, last week had said the increase in interest rate would have an impact on the the purchase of national cars.
It said the company was in discussions with banks and financial institutions to come out with a package that was affordable for its customers.
The deal was expected to be finalised this week, it said.
Currently, the financing rate for national cars is between 3.85 per cent and 4.1 per cent based on the engine capacity.