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What generally happens to banks when interests rates cut?

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Not applicable
Firstly I know anything can happen (and has been happening) that's why I used the word "generally". Do they rise or fall? Also if the expected rate cut isn't received is that going to make the banks rise or fall?
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Super Contributor
All other things being equal, lower rates are good for banks.
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Super Contributor
Supposedly also good for the investor, but do not expect fireworks increase in your bank share portfolio...maybe better for the trader, because traders have a technique to bugger up the stable market investment factor, which results in a down side. Everyone expects and hope for a reduction in the repo, which will be better for the man in the street, derived from a stimulated economy and the resulting echo... I predict 50 points down nexy week.
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Not applicable
if a 100pts drop was expected and we only got 50pts what would happen? and vica versa?
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Super Contributor
The same as with food prices when the oil price lowers, or the interest rate lowers... - there is never a correction in favour of the consumer, in the case of this market, the share price will fall, to the detriment of investors... but the market does not expect 100 points, thus any further discussion will be based on a hypothetical scenario.
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