QUOTE(w19 @ Apr 18 2014, 01:52 PM)
Example / Just sharing!
1. Current Malaysia inflation rate is 3.5% (I just read it last two days.), bank FD rate is around 3%.
2. When FD rate is lower that inflation rate, if too long this will course asset bubble. Asset bubble: first: Currency Drop (I believe you know our currency have been drop 10% to USD. Dec 13 rm2.98 exchange 1 USD, Now Rm3.30 exchange 1 USD.) Second: Property & Stock.
3. You can find out why some of bank increase car loan interest by 0.4% to 0.7%. Bank say Bank Negara ask them to do it. The funny thing is Bank Negara give out statement saying they never have this instruction. (I just read it few days ago.)
4. What I know is we going to have next round currency drop.........if interest not up.........So sad..........My advice is move your money out now! Foreign Fund all out already. Super Rich all out already. Im poor little malaysian must out now to saving my money value........Investment is all about value. Money is all about value. If not, this all is just no and paper.
5. Believe or not! Let see!
this school of thought is conventional, the issue has been thrashed to death again and again.
been going on for a long time, bnm or gomen has no will to raise rates for fear of slowing growth and risk a recession. same with many other gomens.
everybody wants to "inflate yr way out of trouble".

until the currency drops like a stone.
the pressure is high but few believe rates will go up in a major way. for inv purposes, i pay little attention to potential rate changes, not until we see the first move, the real reasons for doing so.
but gud point, our money if not protected is become toilet paper. only way is to make it grow faster and not wait for gomen or bnm as their motives are not always the same as that for any individual.