Is it time to start worrying about inflation?

The central bank has to keep a watchful eye on cost-push inflation for now, to anchor forward inflation expectations.

THE Malaysian economy got an infusion of multiple packages of cash handout and financial relief, targeted loan repayment assistance, government spending and historic low interest rates to counteract against the ravaging impact of the Covid-19 global pandemic and movement restrictions.

During a deep economic recession, keeping low interest rates, loan repayment assistance and easy credit facilities are intended to ease borrowers’ debt services burden (deferred or reduced amount of repayment); and making it easier for consumers and businesses to get cheaper financing.