Title: Oil Price Hike in Malaysia 2008 to RM 2.70 per litre (discussion)

Essay Details

Subject: Business
Author: Jerry B
Date: October 7, 2014
Level:
Grade: A
Length: 2 / 387
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However, in fact our price of petrol at RM2.70 is among the highest globally on the purchasing power parity (PPP) basis. While the neighboring countries increased the interest rates to curb the inflationary pressure, Bank Negara maintained the Overnight Policy Rate at 3.5% to sustain the economy growth...

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Whether or not Bank Negara raises the interest rates, the economy would suffer from uncontrollable inflationary pressure or slower economy growth. This dilemma is suffered by all the Central Banks and there is no confirmative conclusion on its solutions. However, the fact that Malaysia suffers seriously from the second spiral of inflations from the indiscriminately rise in prices of consumer products other than the petrol itself warrant grave concerns...

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