Basic Economy Cycle and Interest Rate

Bila ekonomi menguncup, kadar interest cenderung untuk turun, supaya rakyat berbelanja.

Dan apabila rakyat berbelanja sehingga ekonomi berkembang pada tahap yang membimbangkan, kadar interest akan naik untuk cool down kan ekonomi.

The interest rate in Malaysia is closely related to OPR. Hence by now, all of us should be able to predict, the direction of OPR for the next 12 months based on current economy indicators which are GDP, Employment, Inflation and Wages.

Where are we heading guys?

Source: How Money Works