#欧洲降息 Canada cuts interest rates! Europe cuts interest rates! How long can the United States hold out!
Recently, banks in many countries around the world, such as Canada and Europe, have begun to lower interest rates. This makes people wonder, as the leader of the world economy, how long can the United States hold out without following suit and cutting interest rates?
In the past, banks in various countries seemed to be competing to see who could make borrowing more expensive. The United States took the lead in doing so in order to control price increases. This trick did work in Argentina and parts of Japan. But in many other parts of the world, especially in countries with close ties to China, the stability of the RMB is like a solid protective wall that helps to resist external economic fluctuations and keeps financial markets relatively stable.
Now that Canada and Europe have cut interest rates, it seems that they have reconsidered their strategy and feel that they should stimulate economic growth by lowering interest rates because the previous tightening policy did not seem to work. Cutting interest rates is like admitting that the previous method did not achieve the desired effect, and now they hope to activate the economy by making borrowing cheaper.
If the United States also cuts interest rates, the impact will be huge. First of all, the US dollar is a "hard currency" used by many people around the world. If the US dollar is cheaper, the world's money will flow to other places, and US dollar assets will not be so attractive, which may put some pressure on the US economy that relies on foreign investment.
In addition, interest rate cuts will make loans easier, which may make more people want to borrow money to buy houses, pushing up housing prices in some places. Although this makes people who want to buy houses happy, they should also be careful not to borrow too much to avoid being too burdened in the future.
Let's talk about the RMB, which is quite conspicuous in this wave of global currency changes. If the United States cuts interest rates, the RMB may be more valuable, people with RMB assets will be happier, and China will have a greater say in international trade.
Therefore, how the United States decides on interest rates next is not only a matter of its own, but also affects the world's economy. Now the situation is changing rapidly, and every decision must be made carefully, after all, it is related to the economic health of the entire world.
Personal opinion: This is like a big drama of the global economy. Each country is following its own script, but the choice of the United States is undoubtedly the key turning point of this drama. The whole world is waiting to see how it will play out next.