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End of the cheap money era


Right move: File picture of Bank Negara Malaysia at Jalan Kuching in Kuala Lumpur. Bank Negara has done the right thing to impose stringent rules for buyers of second and third properties.

Right move: File picture of Bank Negara Malaysia at Jalan Kuching in Kuala Lumpur. Bank Negara has done the right thing to impose stringent rules for buyers of second and third properties.

THE latest job statistics in the United States have almost put an end to the debate on whether the US will raise interest rates. The verdict points to an overwhelming consensus that the world’s largest economy will finally raise interest rates next month – its first since the 2008 financial crisis.

In anticipation of the rate hike, the dollar has appreciated against all major currencies. Yields on short-term bonds have trended upwards and short-term deposits no longer earn negative interest rates.

Fed Yellen

   

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