Strong MYR Policy or Increase Interest

BNM has yet to decide what is its strategy to fight against the inflation. They either could use strong MYR policy which is Singapore government is using. Now, 1 SGD is equal to RM 2.43 today. Therefore, the citizen could afford to purchase the imported goods at lower price. Another common stratgey is interest rate shall raise to fight against the inflation. The inflation rate is expected about 6-7%. Therefore, many analysts are expecting the BNM to increase 25-50 basis points if BNM chooses this option.

Increase in interest rate will end up I have to pay higher instalment. Instalment is always Bank Lending Rate (BLR) + spread. If 50 basis points, I may have to pay additional RM 15,000 for total tenure. I could only hope the property could appreciate as fast as the inflation.