One word -> Inflation.

in 97, BNM raised interest rates to boast the significantly weakened RM and reduce funds outflow. Its diff from today's situation.

Central bank's conventional wisdom says :

If CPI > OPR ----> Raise rates
If CPI < OPR ----> hold or reduce rates.

and totally agree that rising rates significantly (anything > 75 bp) today will effectively kill off domestic spending and send the country to a prolonged slowdown. I hope that BNM learns a thing or 2 from latest FEDs move.

hehehehe, lets see which will win :

1. BNM stimulus via cheaper OPR
2. Consumer fear

Sh*t, think I better quickly go and sign my LO, else they might revise the offer upwards.

hehehe, wont complaint even if i didnt get full rate cut, I make extra rm500 now from the same rent VS 2 months ago.

"Lucky"..............