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OM RANA
@om-rana
What happens to stock markets when banks cut rates? When central banks cut interest rates, it usually makes borrowing cheaper for companies and consumers. This often boosts spending and investment, which can lead to higher stock prices. Historically, lower rates have helped the stock markets grow. However, it also depends on other economic factors, so the market can still be unpredictable. After the Fed's rate cuts in 2020, the S&P 500 increased by 16.3% by the end of the year. In the Eurozone, rate cuts in 2016 led to a 20% rise in the Euro Stoxx 50 index. The impact can vary, but rate cuts usually give stock markets a push upwards! #InterestRates #CentralBanks #Markets #Volatility
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