Rate adjustment is a typical montary policy instrument.

If Rate Cut, normally, it is to encourage spending or investment in other aspect, such as equity or bond or etc. After rate is cut, the saving interest rate will be closer to ZERO, as common response to investor, they will seek for alternative investment or saving which offer higher return. e.g. Amanah Saham or Sukuk Fund, etc. which offer higher return compare to Fixed Deposit. It is matching with the Direction of current government policy to encourage spending and investment in market.

If Rate Up, normally, it is to cure the inflation. There may be too much liquidity in the market as the effect of stimulus pump priming from government and bring up the high inflation. when interest rate is up, it is to minimise the hot money in market and encourage saving and less spending to cool down the market. This impact will be a property sector or automotive industry, whereby there is mid to long term commitment as the buyer will think twice before commit on the purchase.

It depend on the economy situation for the government to make the decision for the rate fluctuation. We, as consumer, can judge the situation by being more observant to the price and cost of living to your daily life.