Central Bank rate 6.5% - page 2
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Has this ever happened in the Russian Federation? I don't recall it.
There was, we were not yet born in those days.
Immediately after the war, prices were said to have come down.
A rate cut is supposed to stimulate economic growth. Money is getting cheaper, i.e. credit for both households and businesses is getting cheaper. Those who are saving on deposits are forced to think whether to leave it on deposit at low interest or invest it in more risky assets.
For ordinary people who are not in the know, the only advantage is cheap credit. Soon there will be a lot of new people with expensive new iPhones. :)
In the news they often write about the fact that people's purchasing power has dropped. Here you have lower interest rates, take out loans and buy. A girl calls me from the bank saying that you can take a credit card with payment in instalments. I tell her I do not need it. She starts to persuade me, well, how can you buy, for example, a coffee machine and pay by instalments? I replied, why do I need another coffee machine. The shops are full of goods, but no one buys them, those who need something all have long bought it, and the second "coffee machine" nobody needs. In fact, people do not need a roof over their heads and something to eat. Marketing experts foist all sorts of bullshit on us without which one can live without it and not even know about its existence.
I would bring it down to 1%. We have always had a high rate and high inflation... the correlation is obvious.
A rate cut is supposed to stimulate economic growth. Money is getting cheaper, meaning that credit for both households and businesses is getting cheaper.
Exactly, in theory. This is the way for market economies with relatively low imbalances in GDP and purchasing power by region (a euphemism for the "Moscow is not Russia" thesis).
Don't ask, but think about it a bit...
Go to the shops...
I really don't understand what's wrong with lowering interest rates. Does lowering the interest rate make prices go up?
Lowering the rate does make prices go up.
If prices don't rise with a rate cut, that's trouble. In Europe they lower rates but prices do not go up. They even introduced negative rates and the economy is rotting. Japan has been fighting deflation for years but it hasn't worked. There is a crisis in the US and the yen is getting stronger in Japan.
It's all nonsense. Trade on the trend and don't get distracted by fakes. The rate goes down - stocks go up! ))
Lowering the rate does make prices go up.
If prices don't rise with a rate cut, that's trouble. In Europe they lower rates but prices do not go up. They even introduced negative rates and the economy is rotting. Japan has been fighting deflation for years but it hasn't worked. There's a crisis in America and Japan is suffering because the yen is stronger.
It's all bullshit. Trade the trend and don't get distracted by fakes. Bets down - stocks up! ))
Lowering the rate really starts to make prices go up.
I don't think there is a direct correlation there. Can you justify why prices have to go up?
I really don't understand why a rate cut is bad. Do prices go up because of a lower rate?