A crisis, any crisis, is part of a journey, whether for an individual or a nation. The key response to the 2008 crisis was the loosening of monetary policy in the US and most of the developed economies, as liquidity was pumped into the system. The ringgit has been instead influenced by the monetary policy tightening that is still ongoing. The pent-up demand came online while supply constraints were not yet normalised, which, together with the loose monetary policy throughout the pandemic and even much earlier, created inflationary pressures all over. The Fed, which many opined delayed taking action for too long, started to tighten monetary policy unilaterally and aggressively at the start of the year.

Source: The Edge Markets November 21, 2022 09:36 UTC