Why? I believe the major reasons due to recent report on our GDP shows decade record high at 10.1%. Effect from strong domestic economy in the 1stQtr 2010 & to control inflation pace.
Domestic inflation recorded modest increases in April and May, mostly on account of supply factors. Prices are expected to rise at a gradual pace in the coming months, in line with the continued improvement in domestic economic conditions, and taking into account possible adjustments in administered prices.Mostly to control inflationary rate and stabilize the lending and saving rate (BNM). Thanks to the faster world economy on going recovery (faster than expected despite this 2ndQtr 2010 some 'debt' European crisis)
Major effect on commoner:-
1)Debtor-Increase in debt repayment or potentially expand on loan repayment tenure
2)saver- enjoy better saving rate (good for those rely on saving, retiree,debt free man)
Overall, shows that our country already step out from Global Financial Crisis started 3rdQ2008.
So based on my understanding on the article, the government policy now is to reduce the public from borrowing money & instead, encourage us to save money.
ReplyDeleteWell, many have doubt on the validility on the sudden rise of our country's GDP not long ago. Presumably it was done in order to boost FDI by creating confidence to foreign investors.
Yet again, no proof, no public accusation LOL! But still, even if it was true, it was meant well. & nobody seems to make much noise about it LOL!
Well, pesimistic towards the world market is still on the rise from where i see it. United States still find it hard for their bill to pass the congress & unemployment issues are still a hot topic.
I personally see every policy is good. Its just a matter of whether it will synchronize or suit well with the everchanging global market in the future to come.
(Wrote like an economic analyst wannabe hahaha!)
But then, if all majority of Malaysians save, it is not good for the economy too. There must be a balance - save and spend. The question is, how to strike a balance? Perhaps Banker on the street could advise.....
ReplyDeleteBanker on the street, nice to know that our economy is back on track, for those who got a lot of money to save it a good news indeed, but for those who need to borrow money to finance their business might feel the pain.
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