Low interest rate eases businesses, households’ debt burden

Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar said although the move would have negative impact on banks’ net interest margin, (the former Maybank president and chief executive officer) believes it is a small price to pay for banks to ensure their credit quality remained good during the Covid-19 pandemic.

KUALA LUMPUR: It is important to keep the interest rate as low as possible to lessen the debt burden of businesses and households, as well as to stimulate investment and consumption in the country, said Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar.

Although the move would have negative impact on banks’ net interest margin, the former Maybank president and chief executive officer believes it is a small price to pay for banks to ensure their credit quality remained good during the Covid-19 pandemic.