MALAYSIA'S strong economic recovery in the fourth quarter will likely mean that Bank Negara Malaysia (BNM) would raise the key interest rate as early as next week.
This in turn means that the cost of borrowing for businesses and consumers would rise as the central bank seeks a return to normal conditions for the economy.
Malaysia, like other countries around the world, has been trying to revive its economy by raising government spending and slashing interest rates to a record low.
However, keeping rates too low for too long would have negative implications on the economy, such as share prices that are too high, and BNM has hinted that this is likely to end soon.
Malaysia's economy grew by 4.5 per cent in the fourth quarter, much better than the 2.7 per cent gain that economists expected.
Economists now say that the strong growth should give all the reason for the central bank to hike interest rates on March 4, when the monetary policy committee (MPC) meets.
Oh no...I'm sure many of us out there will cry foul !!! Don't you think so? BNM governor Tan Sri Dr Zeti Akhtar Aziz, please have some sympathy on us...pls pls pls!
Business Times
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