Interest rates to creep up?

Some sources said that the interest rates would probably increase next year under the pressure of the rising inflation rate. The inflation has hit a 6-year high of 3.2% in June, largely due to the soaring global oil prices and the subsequent reduction of fuel subsidies by the government, in order to narrow its budget deficit.

Nevertheless, some analysts said inflation is not yet a major concern, as it could be mitigated by stronger ringgit. The Malaysian ringgit has appreciated more than 1.5% since the depeg on July 21.

From a man on the street point of view, I could only feel the impact of the increasing fuel price - used to be RM60+ a tank but now it's RM80 a tank! Food courts have increased prices by more than 10%! I wonder how many of us who do not deal with international trade really benefitted from ringgit appreciation? One thing remains certain - our salaries remain the same!

As for potential house buyers, please plan your purchase now, before Bank Negara increase the BLR too. Perhaps it's safer to go for fixed rate than variable rate.