A study on the effect of interest rate, inflation rate, echange rate and oil price towards on Malaysian commodity price (rubber price) / Mohd Arif Ahamed

• Main Author: Ahamed, Mohd Arif
• Format: Student Project
• Language: English
• Published: 2007
• Subjects: Interest rates
• Online Access: https://ir.uitm.edu.my/id/eprint/40893/1/40893.pdf; https://ir.uitm.edu.my/id/eprint/40893/

This study is conducted to answer the question whether the interest rates which refer to Base Lending Rate (BLR),Inflation Rate (CPI), Exchange Rate (RM/REN), and Oil Price can affect Commodity Price (Rubber Price) in Malaysia. With that, interest rates, inflation rate, exchange rates, and oil price will be put as independent variables and Commodity Price (Rubber Price) will be as the dependent variable. The study focuses on economic growth that has been recorded in 15 years from 1991 to 2005. Simple Linear Regression analysis is used in finding out the relationship between dependent and independent variables. Based on the analysis, there is a significant relationship between oil price and interest rate with the Commodity Price (Rubber Price). However, there is no significant relationship arise between inflation rate and exchange rate between Commodity Price (Rubber Price). The Commodity Price (Rubber Price) reacts negatively with the changes in interest rates and inflation rate but react positively towards the changes in exchange rate and oil price. Besides that, using Multiple Linear regression the result show only oil price have significant relationship towards rubber price.