You people probably too young to remember

That was the time when ASEAN currencies were under attack. Value of RM drop like mouldy peanuts.

One of the defense method is to increase the interest rate high-high to make the RM attractive.

The finance minister used this method. That why got spike in rate. At the peak it was almost 12%, if I remeber correct.
The rest is interesting history.

This post has been edited by Fazab: Jan 16 2014, 09:18 PM

Just for fun-lah. No need to nitpick. Or will really grow old fast-fast.


What happening now is our own doing, so to a certain extent can control, up the BLR a bit a bit.

What happen in 90's was an concerted attack. No chance to do anything. Just open eye watch people die.

The after effects will be same, BLR goes up, bubble burst, but will be less drastic, less painful.

Sure got this new rule? When I took a loan last year with 18 years tenure (max because of my age), the bank manager warned me repeatedly that if interest rate goes up, my instalment will go up also. They will not extend my tenure because oledi max out.

This post has been edited by Fazab: Jan 18 2014, 12:20 PM