BILA IMF UPGRADE GDP HAPPY, BILA DOWNGRADE MAHU REVIEW PULA...??

 

• PUTRAJAYA, April 24 — BNM, Treasury will review IMF assessment on GDP
• "complete" statement during Special Parliamentary Sitting on May 5th.
• gomen, BNM, Treasury, will review the report and provide feedback
• IMF April World Economic Outlook downgraded M'sia’s GDP to 4.1% (2025) 
• from its January estimate of 4.7%
• IMF forecast Malaysia’s real GDP growth 3.8% in 2026
• — Bernama

 

My Comments :

The world oil and gas prices have gone down substantially. Today's WTI is at US$63 per barrel. The one month chart below shows that oil prices are coming down.  

So how are our factories, businesses, plantations etc going to show growth in their business when our petrol and diesel price has not been reduced? If the cost of petrol and diesel is still high in Malaysia compared to other countries then how are our exporters going to compete with exporters in other countries?

Likewise interest rates around the world are trending downwards. But our Bank Negara raised the interest rates dont know for what treason and does not want to cut interest rates. How come? Do you have your own version of economic textbooks?  

Some clowns say interest rates have no effect on inflation. They live on the planet mars. When Bank Negara increased the interest rates, our monthly payments to the bank increased by hundreds of Ringgit. Thousands of Ringgit per year. So the rentals went up. No choice. That is inflation lah brader. Then the business operators (those who pay higher rent) raised their selling prices. That is all inflation lah brader.

Now interest rates are trending downward. 
So when is Bank Negara going to cut the interest rates?

You cut interest rates, it will lower the cost of doing business. There will be much less pressure on prices to go up. Prices might even come down. Businesses will also have better cashflows which they can use to expand their business.

Tak faham ke brader? When are you going to cut the interest rates?

And then you want to review the IMF's lower GDP forecast for Malaysia !!

Nauzubillah. Whats wrong with you people?

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.