Inflation - Growth Fears!
The US stock markets were still suffering from uncertainty over the Federal Reserve's interest-rate plans. It's more of the same trends of the past couple of weeks. Investors are concerned that the Federal Reserve will move aggressively further with more rate hikes that will put the economy in jeopardy.
Lately, most of the US giant corporate was facing same-store sales rose at the low end of their forecast due to higher energy costs. The disappointment sparked worries about what other stocks could come under pressure from rising energy prices. This makes us start to think, 'Who else is going to be affected by higher gasoline prices during the official kickoff of driving season?
~Compiled from TheEdgeDaily.
The US scenario might effect ASIA's market indirectly as what we had experienced for the past few weeks. Watch Out! Aim correctly!
posted by Ho Sang @ 4:40 PM
2 Comments:
At 9:07 PM,
Anonymous said…
I read that some of the reason our Bank Negara is raising interest rate are:-
1. to catch up with US interest rate
2. to ensure our interest rate is always higher than the inflation rate
As for item no. 2, does that mean that in the event our interest rate is shooting up, tat means our inflation rate is also shooting up? Does that mean tat when our interest rate is lets say 5%, our inflation rate is lingering behind at slightly below 5%?
Anyone can give some opinion and clarification on this? Economist perhaps??
At 6:59 PM,
danielkong said…
As what i understand, interest rate rise is not to catch up with the inflation rate. It's eventually to keep the inflation rate low or lower. As how does the OPR adjusted is solely base on Bank Negara judgement.
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