But the same arithmetic applies: such price level shocks need have no long-term impact on the inflation rate. In the medium term the real upside risks to inflation lie at home – in whether we see “second round” rises in wages and prices in the domestic economy. It is to counter those pressures that the MPC have judged it necessary over the last year for growth to slow and create a margin of spare capacity in our economy. That makes it more difficult for companies to raise prices and puts more pressure on them to restrain their costs. It also re-emphasises our determination to get inflation back to the 2% target and thus influences the expectations of financial markets, price setters, wage negotiators and households generally. And expectations themselves have an important impact on inflation. Broadly, the higher households’ expect inflation to be, the less they are likely to save today. Inflation expectations also shape workers’ wage demands as they try to protect their standard of living. And companies’ expectations will shape the prices they set as well as their willingness to concede cost increases. We know from the inflations of the 70s, 80s, and early 90s that raising interest rates will in time bring inflation down, even when expectations of future inflation are high. But we also know how painful that process is. It works through the increased threat of bankruptcy and unemployment. That forces a change in peoples’ behaviour and their hearts and minds and expectations follow.
There are many ways we can protect ourselves from scams, but in my mind, they boil down to three steps, what we call “3S - Spot, Stop and Share”: Spot – Look out for signs of scams. Question, investigate and enquire to ensure that you are about to engage in a legitimate transaction; Stop – If anything looks doubtful or suspicious, it’s probably a In such cases, stop engaging with the suspected scammer. It is important that you do not provide any banking or payment details; Share – Share your knowledge of scams with friends and family, and help protect others by reporting scams to relevant authorities so that they can take action. This 3S concept is also in line with the theme of the virtual exhibition which is ‘Semak Sebelum Diperdaya’. I hope that the information and safety pointers from this exhibition can help the public avoid being scammed. This exhibition can be accessed through the website of the Museum and Art Gallery of Bank Negara Malaysia at https://museum.bnm.gov.my/fce. In closing, always remember that scammers will evolve their tactics to fool and ensnare customers. I hope that through this virtual exhibition, all of us will be more aware and better equipped to protect ourselves against scams. We can surely succeed in beating scams, but this requires collective efforts and action by all, and not just of the authorities. All of us can do our part to raise awareness and share relevant information on scams with others, being vigilant ourselves while also helping others do so.