Interest rates are bound to be increased sooner or later as the economic conditions improve.

Yeah !!! Why does that confuse you anyway ?

Not quite so. It all depends on the economy. Back in 1998, our interest rate went up like there is no tomorrow to prevent the total destruction of MYR. However, approximately 10 years later, Bank Negara slashed the key interest rate instead. Why ? This is mainly to increase spending.

When the economy is up and everything is good again, interest rate should go up as you can see with Indonesia and Brazil. As a matter of fact, many actually see the 3.7% (the 12-month fixed deposit rate before the subprime mortgage crisis) too low for Malaysia. The normal rate should be around 4%-5%, so they say.