Not raising the interest is just matter of time or there is a better option?

The market has put full attention on the decision of BNM whether to keep or raise the current rate which has been a hot topic for all financial press and magazines for the past few months. Speculation on BNM will be increase the rate has been ongoing when the governor and second finance minister have both refuse to say no to the said proposal of the market.

However, on the date of 25^th July , the final decision that everyone is waiting for are surprising where BNM final decision was to remain the current rate as for the coming near future as concern. Majority of the market has been a bit shocked with the decision of BNM whereas press report has suggest that numbers of commercial banks has revised their rates respectively before the decision and meeting of BNM.

Now the focus should be on what is the BNM solution in their mind to encounter the inflation effect from the hike of petrol price and the CPI drastically to the record high? I able recall a report that I came through before this which highlight that if say the BNM is not getting with the rate, would they put their hand and mind into the MYR? This could be a very interesting topic which could be look into and to study on the viability and the effect of such action.

At the moment, central bank decision on whether to take action on increase or decrease the rate and the strategy and policy on the forex has been the major concern and hot topic for the market.