Financial encyclopedia

Interest rates affect

2022-06-22

 used to be an overheated economy, and raised interest rates in response to rising inflation. But now, the economy is sluggish, but the world keeps raising interest rates to suppress inflation. What kind of assets will be affected? 

1. Rising interest rates push up borrowing costs , increasing the operating pressure of companies and the living burden of families
2) As interest rates rise, pressure on housing prices increases 
3. Promote the inflow of foreign capital and the relative rise of the local currency exchange rate, which is favorable for imports but affects exports 
4. Reducing money supply depresses investment and stock market falls




 



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