Answer to Question #173666 in Macroeconomics for norwa

Question

In January 2018, Bank Negara Malaysia (BNM), raised its interest rates for the first time since July 2014. Economists speculated that it is one time event and that there won’t be interest rate hikes given that Malaysia’s growth is steady and inflation is mild.

Why some economist speculated that the interest rate hike is one time event?

Answer 1

If the Demand for and supply of money was consistent then the Economists could easily conclude that it's a one time event.If the rate of inflation is mild then automatically the economists can conclude that the hike of interest rates is a one time event since its one of the factors that affects interest rates.