BNM and Economy
Cutting interest rates show economy is good, right?
Yes, it has been increasing and increasing and increasing within just a period of 2 years. From close to zero (0.25 percent), it has risen to current 5.5 percent. If you know a country is about to keep increasing their rates, institutional investors would be attracted to their currency, especially if they are the largest reserve currency in the world. Even if they run deficits and they need to keep borrowing money to pay off their debts which now stands at US$34 trillion.
