Last night, the European Central Bank decided to cut the deposit rate by 25 basis points to 3.5%; cut the refinancing rate by 60 basis points to 3.65%; and cut the marginal lending rate by 60 basis points to 3.9%.

In June this year, the European Central Bank cut all three key interest rates by 25 basis points, the first rate cut since it stopped raising interest rates in October last year. In July, it remained unchanged. This is the second rate cut in Europe this year. This time, the loan rate cut slightly exceeded market expectations. Look at how others cut interest rates. The deposit rate only dropped by 25 basis points, while the loan rate dropped by 60 basis points. Learn from them~

The Federal Reserve will also start its first interest rate cut next week. The market currently expects a high probability of a 25 basis point cut, with further rate cuts in November and December. The European Central Bank expects one or two more rate cuts before the end of the year. Canada has already cut interest rates three times before.

This means that the global interest rate cut cycle has officially begun. In the previous interest rate hike cycle, developed countries raised interest rates one after another, resulting in a large interest rate gap between China and the United States, a large amount of domestic capital outflow, which led to great pressure on China's exchange rate and suppressed the room for interest rate cuts.

In short, the global interest rate cut cycle has begun, which is definitely not a bad thing for us.

Bloomberg reported that the interest rates on existing mortgages will be lowered as early as September, and may be reduced by 50 basis points immediately. This is the third time in half a month that foreign media has said that the interest rates on existing mortgages will be lowered. Without a reliable source of information, it should not be mentioned so frequently.

Of course, I hope it can be reduced. It can reduce the debt pressure of ordinary people and optimize the balance sheet of the people. If the interest rate can be reduced, a loan of 1 million yuan, equal principal and interest, can pay 500 yuan less per month, which is equivalent to giving money to families with existing mortgages every month... If you do a big account, if you reduce the rigid expenses of 500 yuan per month, many families who can't afford to pay their mortgages may be able to afford it, reducing the proportion of bad debts in society, preventing families from being broken up and reducing social hostility.

In comparison, the reduction of these expenses can improve food, purchase clothing, and stimulate consumption, but it is actually a small matter.