What exactly does this rate cut scrounging? Does it lower mortgage rates? Bank rates?
I am just a little confused on what the interest rate cuts target exactly. Does it tight-fisted the interest rates on savings and CD's can go down? What does it anticipate for the dollar?
Answers:
No direct effect on mortgage rates. CDs will probably decline. Dollar will be weakened.
The prime rate is a standard that the banks use to substructure certain rates that are being used by the hill. For example... what is it now? 4.5? lets use that for an example.
BofA pays 3.00 for some cds, so that system on ur investment, u are receiving 3% while the bank make money because of the difference of 1.5 %... another example is credit card rates. most would say something like.... prime plus 2.99 which make ur total interest rate on a credit card, 7.49%. So the decrease in the prime rate can facilitate u and sometimes it can hurt you but ultimately the bank has control over their rates.. i be set to fo rexasmple, capital one pays 5.8% on some of their cds right. isnt that crazy? there is a loss but because of want in capital/operating money... business decisions similar to these are made.
A reduction in the rate does not parsimonious that the dollar will weaken but certain whereabouts taken by the market forces (banks and consumers alike) contribute to the standing of the US Dollar.
Savings and CDs will drop downward, maybe as early as tomorrow, or be lag through the first week of November.
Mortgage rates probably won't be affected much.
The rate is lowered for banks to loan respectively other money, and for banks to borrow from the Fed itself.
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Answers:
No direct effect on mortgage rates. CDs will probably decline. Dollar will be weakened.
The prime rate is a standard that the banks use to substructure certain rates that are being used by the hill. For example... what is it now? 4.5? lets use that for an example.
BofA pays 3.00 for some cds, so that system on ur investment, u are receiving 3% while the bank make money because of the difference of 1.5 %... another example is credit card rates. most would say something like.... prime plus 2.99 which make ur total interest rate on a credit card, 7.49%. So the decrease in the prime rate can facilitate u and sometimes it can hurt you but ultimately the bank has control over their rates.. i be set to fo rexasmple, capital one pays 5.8% on some of their cds right. isnt that crazy? there is a loss but because of want in capital/operating money... business decisions similar to these are made.
A reduction in the rate does not parsimonious that the dollar will weaken but certain whereabouts taken by the market forces (banks and consumers alike) contribute to the standing of the US Dollar.
Savings and CDs will drop downward, maybe as early as tomorrow, or be lag through the first week of November.
Mortgage rates probably won't be affected much.
The rate is lowered for banks to loan respectively other money, and for banks to borrow from the Fed itself.
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