As its meeting on 07 May 2019, Bank Negara Malaysia has announced to reduce the...

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Accounting

As its meeting on 07 May 2019, Bank Negara Malaysia has announced to reduce the Overnight Policy Rate (OPR) from 3.25% to 3.00%. If a bank management was quite certain that interest rates were going to rise within the next six months, how should the bank management adjust the banks six-month repricing gap to take advantage of this anticipated rise? In addition, what if the management believed rates would fall in the next six months?

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