--- In obrolan-bandar@yahoogroups.com, "RATU SIMA" <[EMAIL PROTECTED]> wrote:
>
> Uhm,
> 
> Inflation and interest rate = reversal pattern comparison.
> 
> Inflation high = interest rate lowered.

If i am not mistaken, the the central bank has to raise the
interest rate to fight the inflation. Higher interest rate will
absorb money supply and press the consumer spending down.

But higher interest rate is bad for economy growth and stock.


> Inflation low = interest rate sustained or raised.
> 
> Banking and finance sector is worth collecting, I think.
> 
> In relation to sustaining inflation rate, I think GOI will sustain at
> current rate.
> 
> Love,
> Aimee
>


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