Bank Negara increasing interest rate: wise move?

There were two major announcement by BNM (Bank Negara Malaysia) recently, an increment in SPR (statutory reserve requirement a.k.a kadar rizab wajib), and a simultaneous increment  in OPR (overnight policy rate). SPR increased by 1% to a new rate of 3%, while OPR increased by 0.25% to also become 3%.. Okay, as usual some Econ 101 (I REALLY love my profession :-)). What is SPR?....well as the name suggest, statutorily it is the amount of of interest free deposits that have to be kept by banks in BNM (the percentage means that is the fraction of the total saving by the public in the respective banks that should be kept in BNM and can't be used or disbursed as interest earning loans...phew....).. On the other hand, the OPR is the benchmark or gauge of the interest rates the BNM offers or pays  when intervening on the money market. as a repercussion, the BLR (Basic Lending rate increased by 0.3% to 6.6%. MMmmmhhh....you don't have to be a Super Economist nor a rocket scientist to unearth the implicit meaning behind it.The simple answer or explanation is....our economy is heating up....there is an upward pressure on price...it is inflationary....there are excess money out there...Well, if you are still a bit dazed and confused, sign up for my Principle of Economic Class, or maybe you want a personal tutor (terms and condition apply)...nahhhh....I believe it is quite simple, and if not....then wait for my book Economic for Dummies (work in progress..) But.....I know you must be shaking your head and would love to ask.....hey I thought you showed us the inflation graph in the previous blog entry depicting the inflation rate for Malaysia as stable and within controlled level (yes it WAS from an official source....Department of statistics, Malaysia)....so do you think the people in BNM are cuckoos....or the people of DOS trying to pull a fast one...so is our inflation rate, a myth or fact.....I leave it to your wisdom......Have a pleasant weekend...Ciao.........a.h.baharom ,