Parti Bangsa Malaysia (PBM) has urged Putrajaya to implement an across-the-board loan repayment moratorium following Bank Negara's decision to hike the overnight policy rate (OPR) by 25-basis-point to 2.75 percent.

PBM president-designate Zuraida Kamaruddin said she received many complaints from businesses on cash flow problems due to rising interest rates.

"We have also received feedback that many businesses had structured their loans on the assumption that the economy would rebound.

"But this does not appear to be the case as even the World Bank recently revised Malaysia's 2023 growth target from 4.5 percent to 4.2 percent," she said in a statement today.

In view of this, Zuraida said a loan repayment moratorium will provide a critical lifeline for businesses.

"Economists have validated the success of past moratorium plans and I am sure it will have the same effect now.

"Furthermore, banks have proven to be resilient, having made respectable profits even at the height of the Covid-19 pandemic.

"They are financially more than healthy enough to absorb any shocks that may arise due to the moratorium," the incumbent Ampang MP added.

Bank Negara raised the OPR from 1.75 percent in March to 2.75 on Nov 3.

The OPR is now at the same level as it was right before the pandemic struck in February 2020.

Bank Negara raises OPR by 25 basis points to 2.75pct

Bank Negara raises OPR by 25 basis points to 2.75pct

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