Macro Thread
Apr 11, 2016 at 14:48
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Member Since Jan 13, 2011
26 posts
Apr 11, 2016 at 14:48
What does it mean???
Central Bank raises interest rates
1. More expensive to get loans, less loans given
2 Less money circulating less buying power and activity
3 economy slows down
Central Bank lowers rates
1 cheaper price of loans
2 banks give out more loans
3 consumer borrow to buy cars and houses, business borrow for capital expenditures
Higher interest rates attracts deposits in that currency to earn more, currency up
Central Bank raises interest rates
1. More expensive to get loans, less loans given
2 Less money circulating less buying power and activity
3 economy slows down
Central Bank lowers rates
1 cheaper price of loans
2 banks give out more loans
3 consumer borrow to buy cars and houses, business borrow for capital expenditures
Higher interest rates attracts deposits in that currency to earn more, currency up
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