In the financial environment, The FED through the monetary policy plays a sort of funny game: FED has the power to make the interest rates higher of lower.
This fluctuation depends on "how the economy is doing...well or not", on the inflation which corresponds to the general level of prices, on the budget and many other economical factors.
Today, we are faced a current situation with interest rates very low and low more and more every weeks.
The current rate in the UK is 3% and many forecasts seen it to be at 0% in few times. This lowest point depends on two main factors: recession and inflation. The other important factor will be the time: if the recession is going to be long or not? the inflation is going to be higher or going into deflation?
What are your forecast about that?
Mine is: the interest rates are going to be cut again before Christmas because I think the relation between interest rates and the impact on the economy is too low.
The government should be concentrated on injection of funds which I think have a major impact on the economy.
But let's governments play with interest rates if they have decided to play...
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