Wednesday, April 29, 2009

The Bank Negara Shuffle

Bank Negara is meeting to review its rates. Despite the stumbling economy, i doubt BN will bite the bullet and reduce its rates to 1.25% which i think is the bare minimum to jumpstart a faltering economy. Given its conservative stance and cautious approach (in spite of moderating inflation), I forecast a reduction of .25 basis points with a view towards 1.50 in the medium term(around August or thereabouts).

and despite what the pundits say, i seriously doubt the figures coming out from China and that does not augur well for Asia. Will keep you posted as to why.

Revert: China is a grandmaster at massaging figures and manipulating the currency..............

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