Yes..those 2 we all also know who in charge (same goes the rest I guess). But BNM is different..Especially on monetary policy, nothing above Zeti. How confident I am? Because my HM works there and attend every single MPC meeting there is.

BNM is under MOF, ie Zeti reports to Najib. The governor advises the Finance Minister on the policies, but it is the Minister who makes the final decision. Governor is the government servant just like IGP and AG who carry out daily operational jobs. But the government of the day decides the overall policies, including setting interest rates

If Anuar becomes the PM and Zeti doesnt carry out his instruction, he can fire her

My Economics 101 I studied in uni tells me the government makes fiscal and monetory policies to stimulate the economy. Fiscal policy = Budget. Monetary policy = interest rates, QE1,2,3, forex etc

This post has been edited by EddyLB: Jun 13 2012, 09:29 PM

Exactly..Governor advice the government. So if you were advice by the expert, "you need to execute policy A in order to have better sustainable economic growth which in turn will make your government popular, which directly translate to longer power ship.. " you want to reverse that policy??..Thats my point. Thats why when OPR where increase to curb inflation, although its not a popular decision, government still follow the expert because they know its the right thing to do..at the end..Zeti control.

Yes although I dont deny in rare cases there was a policy reverse by gov. after being tabled.mainly for short-term benefit of certain quarter

Read more: Zeti hints at no cut in interest rate
http://www.btimes.com.my/Current_News/BTIM...l#ixzz1xgVuLavF

Bank Negara Malaysia (BNM) Governor, Tan Sri Dr Zeti Akhtar Aziz, has hinted at Malaysia not cutting interest rate at the next Monetary Policy Committee (MPC) meeting as domestic demand is strong and robust, unless the export growth declines sharply.

Zeti said BNM would monitor the conditions closely.

She said currently, the country's domestic demand was still strong and robust and trade has been affected by the developments in Europe.

"So, we really have to balance it because domestic demand, comprising consumption growing at seven per cent, investment of over 10 per cent and loan growth, is still robust and strong.

All these factors will be taken into consideration.

"This is positive for us going forward and it is likely the growth will be in the range of four to five per cent unless the export growth continues to be affected sharply by the development around the world," she told reporters after delivering a keynote address at the Financial Institution Directors Education Forum today.

Zeti said this when asked whether Malaysia's interest rate regime would be affected if Greece were to exit the eurozone.
Greece will hold elections on June 17 which could decide its future in the eurozone.

BNM kept the benchmark overnight policy rate unchanged at three per cent for the sixth time at the MPC meeting on May 11.

The next meeting is scheduled on July 5, 2012.

Malaysia's exports in April 2012 dipped slightly to RM57.74 billion from RM57.8 billion a year ago, weighed down by slower growth in the major economies and Europe's debt crisis. -- BERNAMA

Just for discussion sake....if Anwar becomes the PM, and wants Zeti to carry out some populist policies which go against what Zeti thinks is right, what will happen ?

Yes for discussion sake only..I think she would resign and replace by another "expert". the choice of who gonna be in the hot seat, will be crucial to any political party, because people will see..So if let say DSAI put Azmin Ali for example because he can execute his populist policies rather than the 'make sense' one..then confirm hes bloody stupid...

Although Azmin Ali being Governor I admit is an extreme case..hahaha

So the cycle will continue..expert policy marker, to be replace by another expert policy marker, to be replace by another policy marker...until they got tired and remove the post and all policies will be under direct discretion of FM , then yes we can say Gov control the policies..

economics just not my stuff...

go on with the comment guys.
try to absorb this things..

Yes, I agree Zeti will resign too. And will be replaced by Anwar's people (let's say Azmin). Azmin will execute what Anwar instructs him to do. So, essentially, monetary policies are part and parcel of the government's policy. Ie BNM = Government. Zeti cannot go against what the Finance Minister wants her to do

If Zeti is thick skin and refused to resign (for whatever other reasons) and go against Anwar's policy, Anwar cannot just directly announce she is fired. She is entitled to serve out his tenure because she is appointed by the Agong under the Central Bank of Malaysia Act 2009, and not the PM or Finance Minister. But Anwar is having control of the Parliament, which he can table amendments to the Act and give power of appointment back to PM. So, at the end, he can still fire Zeti, albeit longer process.

Let's not debate on whether the government or the BNM's expert policy is good for the country and the economy. But if a government agencies (police, attorney general, auditor general, TNB etc) does not follow the instruction of the government of the day, then the government cannot function properly. It is not good for the country

I think the discussion is going towards on politics speculating... we should exclude that

Let's just hope the OPR does not affect my housing loan. That's what I ask for....

This post has been edited by davidlow7: Jun 14 2012, 12:09 AM

Could be go down

hopefully not, increases speculation and higher inflation.
i have loans too. But for the future generation we need to control the speculative elements of property market.

should lower down la....reduce our burden and more internal needs

As long as no increment then im ok with it

Will u guy think that BLR-2.4% might go further down to -2.5%?

I have that thinking because majority of the bank housing loan offer rate are between -2.3% to -2.4%. i.e historical low. If they compete for biz due to the stringent loan approval(base on net income), then the rate might go further down to -2.5%.

What is your opinion?

Then, buy more now for your next generation

IMHO, A little reduce, it wouldn't make much speculation (RPGT and 3rd prop 70% cap is still the key one),
rather, it helps first time buyers lock the best rate and those who are owning house can thus shorter the loan tenure