The bank also decided to cut 1% on the interest rate
of a three-year investment certificate, down to 14% compared to 15% and the return is disbursed every 3 months.
One of the key elements we should work on is to try to identify the impact of interest rate
on the economic growth.
'These responses suggest that given a trade-off, more of the respondents will prefer higher interest rates
to higher inflation, which is suggestive of the respondent households' support for the bank's price stability objective,' the report stated.
Some types of consumer interest rates
are directly tied to the(https://www.fool.com/investing/2018/05/15/the-federal-funds-rate-what-it-means-to-you.aspx) federal funds rate, and therefore can be expected to increase immediately as a result of the Fed's rate hike:
were relatively steady during the period so that when the market started to recover after eight months, the rates were almost unchanged.
Alternatively, a lower steady-state nominal interest rate
could reflect the decline in the equilibrium real interest rate
Another way of estimating what real interest rates
are expected to be in the longer run is to calculate what markets expect them to be on average between five and ten years from now.
The main categories of interest rates
on loans to non-financial corporations also registered decreases.
Through these two channels, interest rate
risk can impact the financial condition of banks in many ways.
Only the results for the interest rate
variables are reported because of space limitations.
Swiss Re's latest sigma 4/2012, Facing the interest rate
challenge, explores how interest rates
affect insurers and explains why a rapid rise in or sustained low interest rates
can be a challenge.