Higher and lower interest rates are routine adjustments.
The so-called interest rate hike means that the central bank raises the interest rate to commercial banks.
This will increase commercial banks’ borrowing costs from the central bank, and eventually lead us to be more willing to deposit money in the bank, which will inhibit investment and consumption. Generally speaking, when a country’s economy is overheating and inflation, the central bank will adopt the intervention policy of raising interest rates.
Instead, a rate cut is an action by a central bank to lower interest rates, which will increase liquidity, boost investment and consumption, and boost the economy.
When a country’s economy is weak or in recession, the central bank will cut interest rates to stimulate economic growth and the impact on investment markets.
Thought.
A cut in interest rates would be favorable, spurring a rally in U.S. stocks and a corresponding decline in safe-haven gold.
Raising interest rates is bad for the dollar, and in the short term gold will rise and U.S. stocks will fall.
But the impact is uncertain for A-shares, which have their own trajectory and little correlation with other markets.
As fears of the new strain continued to ease, commodities and currencies surged on U.S. and European stock markets, while oil prices soared as much as 5 percent.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
