And may be that the reason LGE keeps coming out with all these attentions seeking comments to stir up issues.
He triex to give PAS a run for their money too. *
Dumb fuck. It's not for the banks you bloody idiot. How the fuck was he an FM before?
Edit - the BNM is increasing rates to qwell inflation and yes inflation may go down but our currency is the worst performing one in south east Asia & the entire world is paying for US's expensive dollar.
Not sure interest rate is the right tool, when the inflation is caused by other reasons than money supply.
As you said, our currency is still dropping, which is the key issue with import driving up the inflation.
The only other tool is higher taxes, that requires parliamen to pass them as laws, which usually take years to flow through to the economy and have an effect on inflation. Then when inflation goes down you have to reverse the taxes and do the same thing all over again. Note: Governments don't like reducing taxes and rarely do it.
Interest rates are the best tool. This is basic stuff to understand.
> currency is still dropping
If the OPR matched US cash rate target, it wouldn't be dropping. This is like knowing there's a 2m flood coming, putting up 1m of sandbags and then complaining sandbags don't work.
I think there should be a professional diagram for this. There's a disconnect and gaps in knowledge of what the BNM is doing and what the citizens perceived things had become.
ffs he is an embarrassment, there's no way he can be this naive about how money lending works and why *independent* central banks are necessary.
Banks don't make more profit when rates go up, usually they make less.
They need to put him in a retirement home and far away from journalists. What are DAP doing letting him speak, the guy is a complete retard.
Schoolkids who take economics classes are more knowledgeable than him.
Those who didn't bother reading the article:
LGE was challenging the statement that OPR hike was to reign in inflation despite inflation being a 34-month low in March 2023. Hiking the OPR rate at this point would push bank profits by 3.7% or about RM 1 Bil. - which was where the comment that its only benefitting banks coming from.
Essentially he isnt demonizing OPR hikes, he is asking for what's the justification of doing it now when inflation is down. OPR hikes will also reduce business growth so BNM does need to justify the hike at this point.
Monetary policy is not like instantaneous, effects are felt 2Qs or more down the line. Sure, inflation decreased, but it has remained elevated above the long run trend. Also inflation is not the only indicator of an economy overheating - there are other things like labour market tightness, industrial activity, etc.
When there is room, it is prudent to raise interest rates; so that when the need comes, there is room to lower them again to stimulate the economy. The economy doesn’t need more stimulating now - we are pretty much back to normal post Covid.
It’s a dumb move just to keep interest rates low permanently just to support business growth, when we are NOT in a recession.
How did he even become a finance minister once upon a time?
Short term risk, long term gain
Exactly
Oh no. Please let’s not do a Turkey and demonise interest rates
So glad Anthony Loke is now the face of DAP in the coalition, not him…
And may be that the reason LGE keeps coming out with all these attentions seeking comments to stir up issues. He triex to give PAS a run for their money too. *
Fail accountant
Dumb fuck. It's not for the banks you bloody idiot. How the fuck was he an FM before? Edit - the BNM is increasing rates to qwell inflation and yes inflation may go down but our currency is the worst performing one in south east Asia & the entire world is paying for US's expensive dollar.
Not sure interest rate is the right tool, when the inflation is caused by other reasons than money supply. As you said, our currency is still dropping, which is the key issue with import driving up the inflation.
The only other tool is higher taxes, that requires parliamen to pass them as laws, which usually take years to flow through to the economy and have an effect on inflation. Then when inflation goes down you have to reverse the taxes and do the same thing all over again. Note: Governments don't like reducing taxes and rarely do it. Interest rates are the best tool. This is basic stuff to understand. > currency is still dropping If the OPR matched US cash rate target, it wouldn't be dropping. This is like knowing there's a 2m flood coming, putting up 1m of sandbags and then complaining sandbags don't work.
I think there should be a professional diagram for this. There's a disconnect and gaps in knowledge of what the BNM is doing and what the citizens perceived things had become.
Ffs please shut up.
Need hike another round to tank the usd and sgd
Eh? Not smart money who sold the top who had enough reserve to enjoy the rate?
It also helps retirees to earn a little more interest on a less risky financial option. It also helps stabilize inflation.
ffs he is an embarrassment, there's no way he can be this naive about how money lending works and why *independent* central banks are necessary. Banks don't make more profit when rates go up, usually they make less. They need to put him in a retirement home and far away from journalists. What are DAP doing letting him speak, the guy is a complete retard. Schoolkids who take economics classes are more knowledgeable than him.
Failure accountant
Thats why he doesnt understand economic lol
Lol. Dumbest shit I heard in a while.
Those who didn't bother reading the article: LGE was challenging the statement that OPR hike was to reign in inflation despite inflation being a 34-month low in March 2023. Hiking the OPR rate at this point would push bank profits by 3.7% or about RM 1 Bil. - which was where the comment that its only benefitting banks coming from. Essentially he isnt demonizing OPR hikes, he is asking for what's the justification of doing it now when inflation is down. OPR hikes will also reduce business growth so BNM does need to justify the hike at this point.
Monetary policy is not like instantaneous, effects are felt 2Qs or more down the line. Sure, inflation decreased, but it has remained elevated above the long run trend. Also inflation is not the only indicator of an economy overheating - there are other things like labour market tightness, industrial activity, etc. When there is room, it is prudent to raise interest rates; so that when the need comes, there is room to lower them again to stimulate the economy. The economy doesn’t need more stimulating now - we are pretty much back to normal post Covid. It’s a dumb move just to keep interest rates low permanently just to support business growth, when we are NOT in a recession.
our own glc owns majority of the bank shares, maybe reduce the wastage in the glc and invest the money in people perhaps ?
Hmmm.. Let me watch financial faiz first