A sharp rise in inflation can affect inflation expectations, reduce public spending and demand and, as a result, economic growth. The government acknowledges the impact of inflation on the economy and households, and has taken various measures to help the nation face these challenges. Inter-relationship between the ringgit, interest rates and intercountries’ trade valueAnother fact to acknowledge is that the movement of any currency, including the ringgit, is closely related to inflation rates and monetary policies. Singapore has raised their policy rates three times in the last six months, while South Korea, twice this year. The ringgit can be strengthened, but...To strengthen the ringgit and control inflation, some have suggested that Bank Negara raise interest rates and tighten our monetary policy.

Source: The Edge Markets May 02, 2022 19:28 UTC