When central banks raise interest rates, mortgage borrowers can expect higher monthly repayments, while savers are supposed to be rewarded with bigger returns on their deposits. Or so the theory goes.
We are so used to basically zero interest that it has lost its power as a market signal. It will come back eventually, but we were at basically zero for a decade and a half and rates are high enough to support 1%+ interest rates for maybe a year? Just takes time to adjust.
We are so used to basically zero interest that it has lost its power as a market signal. It will come back eventually, but we were at basically zero for a decade and a half and rates are high enough to support 1%+ interest rates for maybe a year? Just takes time to adjust.