Will financial crisis cause interest rate go up or is it totally up to USA's policy?

[MelodyShi]

Hi,I wonder will the inevitable financial crisis, because of Covid-19, will cause interest rate go up rapidly and hugely in another 1 year or 2 years, or does it totally depends on U.S.A's financial policy?
NOte: I have got the warning from a friend who said EVERY time when we had global financial crisis, there always was the quick and huge increase of interest rate shortly after a duration of the low rate.

[PC]

Why would anyone pay more for something so plentiful?

[Anthonyacat]

NOte: I have got the warning from a friend who said EVERY time when we had global financial crisis, there always was the quick and huge increase of interest rate shortly after a duration of the low rate.

This is just wrong, based solely on the most recent GFC. Look at what interest rates in New Zealand and USA have done since 2007. https://data.worldbank.org/indicator...-US&start=2007

[Monsterbishi]

It'll be a slow rise, banks are more image conscious now than they've ever been, I figure they'll jack it up 0.1% every six weeks or so to appear in line with measures that our current leaders implement to recover what they've spent.

[Perry]

It'll be a slow rise, banks are more image conscious now than they've ever been, I figure they'll jack it up 0.1% every six weeks or so to appear in line with measures that our current leaders implement to recover what they've spent.

How long do you think the "current leaders" will be current, I wonder?

[Monsterbishi]

Hopefully only a few more months.

[Frezzinghot]

How long do you think the "current leaders" will be current, I wonder?

Id give them 3 months, by that time all the free stolen money that was given out has been spent, reality kicks in that thousands are on the dole queue and can't find jobs, people start losing there homes and look for someone to blame, bye bye Aunty Jacinder & co.

[Frezzinghot]

This is just wrong, based solely on the most recent GFC. Look at what interest rates in New Zealand and USA have done since 2007. https://data.worldbank.org/indicator...-US&start=2007

If they raise interest rates they will kill of the rest of us, just can't see them doing this, a big time investor in Australia talks about this very subject.

[Frezzinghot]

In those scripted press conferences at 1pm each day, this should be played at 130 decibels to Aunty Jacinder & co.

https://www.youtube.com/watch?v=V9AbeALNVkk

[Monsterbishi]

If they raise interest rates they will kill of the rest of us, just can't see them doing this, a big time investor in Australia talks about this very subject.

I'm looking at it from the banks perspective as to what will be the most viable way to maximise profits in the coming years - The property market was already stagnating before Covid-19, it's ground to a halt now, which means very little in the way of new lending. This means they now need to rely on their existing customers to maintain their epic profit margins. Raising interest rates will yield huge amounts of profit, and if it means some of their customers end up in default, the banks still win massively in the short term.

The banks know they can screw the little guy as well, they know full well that under the current welfare-orientated system that they can essentially get paid by the govt - the fact that even with what I earn, I'm still eligible for things like their family tax credit proves how messed up the system is!

[Frezzinghot]

I'm looking at it from the banks perspective as to what will be the most viable way to maximise profits in the coming years - The property market was already stagnating before Covid-19, it's ground to a halt now, which means very little in the way of new lending. This means they now need to rely on their existing customers to maintain their epic profit margins. Raising interest rates will yield huge amounts of profit, and if it means some of their customers end up in default, the banks still win massively in the short term.

The banks know they can screw the little guy as well, they know full well that under the current welfare-orientated system that they can essentially get paid by the govt - the fact that even with what I earn, I'm still eligible for things like their family tax credit proves how messed up the system is!

Ive been reading from people more in the know than me, basically this event is not like any we have seen, way bigger than the GFC! Also with aunty jacinder making it worse, can you really see them raising the interest rate, anyway the RBNZ control this and they are just part of the plan along with the government. Haven't you played monopoly? Banker always wins anyway.

[Davo36]

Ive been reading from people more in the know than me, basically this event is not like any we have seen, way bigger than the GFC! Also with aunty jacinder making it worse, can you really see them raising the interest rate, anyway the RBNZ control this and they are just part of the plan along with the government. Haven't you played monopoly? Banker always wins anyway.

I doubt National would be any better. Remember they printed billions during the earthquakes and GFC. Greatly inflated the public debt.

I'm not sure this one will be all that bad. Could be a lot of people return to work in say 10 days, and then maybe everyone in a month.

[Frezzinghot]

I doubt National would be any better. Remember they printed billions during the earthquakes and GFC. Greatly inflated the public debt.

I'm not sure this one will be all that bad. Could be a lot of people return to work in say 10 days, and then maybe everyone in a month.

Agreed......

[chook]

Agreed......

You're delusional