Malaysia's Economic Update : Inflation or Deflation?

One of the best sources related to the economics info for my reading is from CIMB Research. I’m sure most of banks or any financial institustion have their own economist. So, i gain this opportunity to updated my knowledge about current economic situation by following their public research. Thanks God!

As we known, we’re heading to the economic recovery globally. Even there are problem with hight unemployment rate at US ( around 10.2% ) , asian countries are leading to recovery very soon. I’m not sure what’s the factors.credited to Invest2succes

Fo Malaysia’s current economics situation, we’re now in minor DEFLATION. The meaning of minor deflation is negative inflation for short period. This negative is caused by several factors. As an explaination, inflation is calculated through CPI ( Consumer Price Index ). CPI involving general level price of certain goods and services. If CPI negative, it will lead our inflation rate tend to be negative too. And today we got this negative CPI because one of the factors is the declining in price of fuel. Is it right? Is it our oil price is decline? This took me several minutes to think. I dont like to say that the data is liar, but maybe government should declare this thing to public.

Meanwhile , our OPR ( overnight policy rate ) is stay at 2.00%. No change at all. This is the lowest rate since April 2004. OPR is a determination of our interest rate. If you’ve been heard about malaysia’s interest rate, the answer is here. With that lowest rate, Our government is likey encourage people to borrow , to spend more than saving. Believe it or not, we can see that bank

image credited to Invest2succes

s only offered low return for any Fixed desposit saving account. With 2.5% per annum, for sure the depression of money is more. And saver will be a looser.

That’s all for today. I’m looking for any comment to make me better in English writing..Hoho..it’s really easy to write in english, but the hardest thing is to write it in proper English. lol !

Ps: i have to steal my time to read this site later http://www.elliottwave.com/deflation-survival-guide.aspx

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Comments

  1. miloc says:

    Very interesting article about the 2009 deflation. So, the OPR were set at 2%, but (please educate me) how does it comply with Shariah?
    thanks.

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