klibor or kuala lumpur interbank offered rates. It is the interest rate that banks borrow at. This defines cost of funds and also interest rates for FD.

well in economic terms, when there is over inflation, governments will increas interest rates to slowdown spending thus limiting inflation. Then when there is deflation like in jpaan during early 2000, also in singapore, interest rate or BLR was at only 1-2%. Japan had a 0.2% interest at the lowest point and FD was -0.35% they wanted people to stop saving and start spending.