I don't know whether it will go up or down but one things I do know that a economic slowdown will not push up BLR. Actually it is the exact opposite and you've already pointed out the fact. The US credit crisis has forces the (US) central bank to lower interest rates to spur growth.

And I do think we have quite a brilliant central bank governor on our side, and it has several times in the past pointed out that whether BLR were to increase or decrease will depends on inflation being cost pushed or demand pulled since inflation and economic growth is often closely corelated in financial theories. If it's cost pushed, then increasing BLR to contain inflation will do more harm than good since prices will be going up regardless of BLR and the further increase in BLR will only only constrain growth. However, if it is demand pulled, then increasing BLR might be a good means to contain inflation and growth will not be too much affected.

Unless the present condition, inflation pressure is more cost pushed factor and it is my opinion that BLR will stay in the near future.

From what I heard, BLR will increase further and it would be anytime soon. I hope this rumour is not true but car loan interest have increased somehow.

Are you sure it will happen next week? My fren was asking about it, cause he want to get a car by now if it is true. Where you got the news?

I am curious to see how a Rate hike can damage the most people. It will do more damages than actually helping the poor to fight the inflation. Especially those who barely save money in bank, they certainly wont benefit much with a better FD rates, instead their LOAN will get bigger.

I still think the Gov should have more tax reduction in any field or any kind of incentive skim to help the poor than raising interest.

Raisin rate will cause people save more. Arent we have a lot of cash sitting in bank now?