Hello Everyone, this week I will be covering business news: China decreasing interest rate and mortgage down payment.
Last week in America, the Fed decided to lower the interest rate; as a result, the stock market growth bloomed. This week in China, China's Central Bank also announced the decision to cut short-term interest rates and mortgage rates, to make it easier for households and companies to lend money and attempt to prevent the housing market crash. (https://lnkd.in/dqD9QFKb
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Like what happened to the stock market in the US, China's stock market also had growth and seemingly recovered little by little since COVID-19. Although many real estate investors were happy about that, risks are still associated with lowering interest rates such as reduced profitability for savings, CD, banks, or other lending institutions; and difficulty allocating capital efficiency since lowered interest rates make weaker firms meet their debt faster; increase the risk of inflation when people started to spend more and that increase the demand and prices, and that can further lead to the devaluation of currency.
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