What do higher interest rates mean for you?

Рет қаралды 172,830

2 жыл бұрын

An entire generation of people is experiencing higher interest rates for the first time in their adult lives.
Interest rates have been at historic lows since the global financial crisis in 2008 - but they’re beginning to creep up.
As the pandemic devastated markets and slowed economic growth, many central banks made aggressive interest rate cuts. That lowered the cost of taking loans, which in turn spurred consumer spending and encouraged big credit purchases.
But now, with demand recovering and supply chains affected by the pandemic and the Ukraine war, inflation has gone up.
“There is no other way to end this inflation, given the supply chain disruption in the background, besides demand destruction,” Lee Boon Keng, director of the Centre for Applied Financial Education at Singapore’s Nanyang Technological University, told CNBC in an interview.
“And demand destruction can only be achieved by very, very tight monetary policy. That includes high interest rates.”
Watch our video to find out what rising interest rates would mean for your money.
#CNBC #InterestRates #Inflation #CentralBanks
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Пікірлер: 103

@TomNook. 2 жыл бұрын

Everything in life is a cycle. Always save in the good times to cope with the bad times.

@articlesbox7502 2 жыл бұрын

Absolutely brutal market. The rug was from the Fed

@SatendraYadav-rb2un 2 жыл бұрын

Those who want to live happy in future, avoid taking loan and be a victim of usury

@shesh32 2 жыл бұрын

Everyone at some point in their life will have to get a loan for securing necessities for life such as house and a car(more in western settings). You can never be a victim when it comes to loans, you're either a sensible person who's buying a necessary stuff or an idiot buying unnecessary stuff. Banks just facilitate the way to become one of those. Of course, either way they make profit out of you. But that's not victimization, it's just how the world works.

@SatendraYadav-rb2un 2 жыл бұрын

@@shesh32 Well, the day you realize difference b/w need and desire..the same day you’ll never take or think about loan

@SatendraYadav-rb2un 2 жыл бұрын

@@maeudaou7347 Well, true in a sense but history is full of example of gift who tried to give free money to its people but handful of capitalists overthrew those govt from Roman empires to Saddam hussain

@babibrain 2 жыл бұрын

Business has just started recovering from pendamic and now the bank is raising the interest rate, it will make things worse. The government should lower the interest rate to boost up the recovery. Bank is making money during the pendamic and now the bank demands more profit. Small businesses are slaughtered again and again.

@SatendraYadav-rb2un 2 жыл бұрын

@@babibrain inflation and growth are always run opposite to each other..

@FinancialShinanigan 2 жыл бұрын

It means my home loan officer offering me a drink when we went over what I can now afford.

@archie9026 2 жыл бұрын

Wished they would CHANGE the current FED management who brought us here…they should have reacted much faster to avoid this moon prices especially in real estate. And they shouldn’t have overfinanced everything during pandemic times…printing way too much money…all entrepreneurs were swimming in money without touching their savings

@gauravparmar5664 2 жыл бұрын

You can't have it both ways. The Federal Reserve (and Congress and both the current and previous President) created this problem. Primarily the Federal Reserve contributed to the current issue of inflation by continual printing at astronomical levels. The Trump administration added $6.8 Trillion to the deficit. The current administration has already added another $3 Trillion and counting. The Fed thinks raising interest rates will stop inflation. However, I find it unfortunate that the same entity that caused the inflation wants to somehow eliminate the issue that it caused due to printing money and making our currency fiat.

@pmckernan100 2 жыл бұрын

There are a lot of factors, one is that the FED keeps talking about keeping them going up and up, and there really is no stopping this at the moment. Just the FED talking about rates going up is having a change on the rates. There are many different things that have changed them since January, and we do not see a slowdown.

@_Digitalguy 2 жыл бұрын

that's normal, it's called forward guidance

@stevewilliams6354 2 жыл бұрын

So when are we going to seen a decent rate for saving account?

@Cyber__Tech3 2 жыл бұрын

*The FED has lost it and the sad fact is, it's pretty obvious we are headed for hyperinflation. I think stores better have tight security because when people can't afford to feed their families, things might get ugly*

@rashmisingh2235 2 жыл бұрын

Have you guys ever questioned why things are so pricey in your country. For example I buy medicine for my mom who is type 2 diabetic for just under 40 dollars a month. You guys are being looted by corporates and politicians who are hand in glove. Look at what pfizer did. Just the news came out, media distracted attention towards wade vs joe.

@MassEffectFan113 2 жыл бұрын

You're such an alarmist.

@evangelistopoku6544 Жыл бұрын

The fed know, however she doesn't have to let ppl panic

@dsakurai Жыл бұрын

@@MassEffectFan113 3 months later, how's it going?

@YogiLogic 2 жыл бұрын

Excellent ! 👌

@Sunilrai42 2 жыл бұрын

Good information

@alparslankorkmaz2964 2 жыл бұрын

Nice video.

@efaesfefse9236 2 жыл бұрын

Basically everything more expensive.

@AaronLin88588488 2 жыл бұрын

BNPL affect your mortgage loan or other loan calculation. Becareful with it.

@jamesruscheinski8602 Жыл бұрын

Could reduce interest rates for consumers, such as mortgages for houses, by taking out inflation to loweri mortgage rates

@ranjithpowell6791 Жыл бұрын

That Singaporean Professor said it better than any Anglo-Saxon. Is it time for Singapore to take over from the US, at least when it comes to financial matters.

@reconchris3855 2 жыл бұрын

@alessioleporati1478 Жыл бұрын

The reason interest is high is to combat inflation. If you lower interest rate like in Turkey, you’ll have currency collapse.

@paxundpeace9970 2 жыл бұрын

Don't blame it on China the FED overreacted by raising the interest rates 2 steps at a time. This was not a pure demand inflation this was a supply crunch inflation. So when supply problem lift prices go down.

@MsPotery Ай бұрын

Useful information!

@harukrentz435 2 жыл бұрын

BASICALLY MIDDLE FINGER TO THE MIDDLE CLASS AND THE POOR!

@jimbojimbo6873 2 жыл бұрын

We’ve had stupid high inflation for a year and the FED isnt even at 2% yet Like whats the point

@Thelango99 2 жыл бұрын

Well it will at least be *Interesting*

@timmorvant1998 7 ай бұрын

My first house was 9 1/5 percent with 2 prepaid points. 6 percent would have been great.

@vinoddaniel5008 2 жыл бұрын

Good tips and guidance to be followed by the majority average consumers in any country with respect to earning and spending vitamin M that is Money. Nice 👍

@AznCracker13 2 жыл бұрын

I just checked the CD rates for major banks and they are still like 0.05% (chase). Basically you lose money getting a CD right now If you actually want a CD I'd consider non-traditional banks like Discover which will give you 2.5% interest, which is still not good but better than basically zero. These are all FDIC-insured. If you have 10k you don't need right now I would buy the Series 1 Treasury bonds, it pays 9% interest right now for 6 months.

@Oceansta 9 ай бұрын

You cannot make a video like this for the average consumer without talking about compounding interest.

@chrisjamel8461 2 жыл бұрын

Its probably not gonna be like the 70s...that was cost push inflation; a pressing reality for goods with inelastic demand like oil. We have significant wage growth, increasing wealth, and research and development that should increase the profitability of not just American but even developing economies. If productivity and employment growth remains higher and sustainable it could be a boom.

@Fellowtellurian 2 жыл бұрын

Wait, if I get a car and inflation makes that loan worth less but it has already been used to purchase a car, I a better off because that car is easier to pay off as the economy raises wages to keep up with inflation. That 20k felt like 20k before inflation but now it feels like 15k. That's great!

@AnonymousUser-tp6ij 2 жыл бұрын

Depends on if your wage goes up with inflation, if not then inflation is bad. That car will be more expensive if inflation is 3% and your wages increase by 2%.

@AlucarDarkiush 2 жыл бұрын

Lol, like wages ever truly kept up with inflation

@terrywagner2934 Жыл бұрын

Raising interests rates, people won't be buying, And thats why I'm not working right now, because of the high interests rates.

@chatsoon6802 Жыл бұрын

How they born the idea of rising your monthly payment to cut inflation. 😄

@juanwiebe1563 Жыл бұрын

The fed should never raise interest rate I own a small business and I can see how damaging that is because no one wants to finance like for real estate or for other stuff that is slowing down job. Who is hurting the most the small business I'm thinking about leaving the US because this is crap

@jon6309 2 жыл бұрын

I work in a bank’s wealth management division. LOL so a bank charges interests to compensate for inflation? Lending money actually contributes to inflation! Think about it, when borrowing money that’s not yours to spend becomes accessible it leads to inflation! Home prices is a good example, when mortgage rates are low people can afford to borrow money that’s not theirs to purchase a home! This leads to a supply demand issue for homes causing home prices to skyrocket!

@foxycon9059 2 жыл бұрын

so the problem here is the bank? 🤔🤔

@jon6309 2 жыл бұрын

@@foxycon9059 banks as well as the central bank and our government for feeble regulations! Not sure if banking should be a public service. China’s banks are nationalized but not like they are any better if anything marginally!

@analisafaletoi811 Жыл бұрын

Starting to understand now when they say the banks always win.

@genek6056 2 жыл бұрын

Buy ZIM stock on Tuesday! SEMPER FI Bros

@awesomebrotherhood7698 2 жыл бұрын

It’s a stupid video for people who already read the first three paragraph of Wikipedia about interest rate.

@Esterpaisley 2 жыл бұрын

Too much too fast is causing big problems with a country recovering from COVID shut downs. In my opinion I would rather deal with prosperity and some inflation than with recession, lower wages and no jobs. The largest impact that we deal with today are high costs of housing and gas prices. The bold moves of the fed are just going to over-steer the economy!

@jye7027 Жыл бұрын

agree

@nstl440 2 жыл бұрын

Get banking stocks. Banks will benefit from higher interest rates.

@chevchell4244 Жыл бұрын

Life is a cycle but when you enclosing the cycle while more people exist is ridiculous

@donnagjoka2587 Жыл бұрын

Yperprofit.. for Bank State.. Bonus and higher level of bankers life.. 👍,just read a small rows.. grammar before you take a borrowed.. they use everything .. ..

@kkybaggy 11 ай бұрын

Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?

@ktube2020 11 ай бұрын

Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.

@stillrising1999 11 ай бұрын

Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice.

@c.t.u.o 11 ай бұрын

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success

@stillrising1999 11 ай бұрын

There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her

@c.t.u.o 11 ай бұрын

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

@asterixky 2 жыл бұрын

Time to increase savings or, like Warren Buffet, buy stocks.

@billstevens9190 Жыл бұрын

Beside we are all in a health crisis.

@SimplyJack3 2 жыл бұрын

Karens caused inflation.

@billstevens9190 Жыл бұрын

If they put everyone in jail. They well have to build more jail. That cost more every day.

@billstevens9190 Жыл бұрын

They did go through the law. They over step the law. Do not pay a made up rate.

@killmongerkid3331 Жыл бұрын

As a teen in Sri lanka I can clearly see the inflwtion

@Fellowtellurian 2 жыл бұрын

We have a problem when the economic system is dependent on people staying poor. The government gives out a $1400 check once a year and that "influx of wealth" has toppled the economy. Let's be real, low interest rates, corporate borrowing and artificial price inflation from commodities lead to this, not a $1400 check during a pandemic. How about instead of raising interest rates, we pull some of that money out of the economy though higher taxes on rich? You know, those same ones that are buying up all the housing in rural America and forcing people into a rental economy? You know, those same rich people that don't want to buy bonds off the government because their stocks remaking more money and they assume the government will cover the associated risks with another bail out? Just tax the rich, it will decrease inflation, it will keep people in houses, it will pay for basic social services a modern society needs.

@Fellowtellurian 2 жыл бұрын

@@maeudaou7347 Elect politicians that will write good policy that prevents taxes from going to fund the military. Simple. Also, why are you liking your own posts? That's weird.

@govindrajan5046 2 жыл бұрын

One milkmen one gas boy the height of building goes up so interest rate goes up when more milkmen or people walk down to get their milk from skyscrapers intrest rates goes down in banks

@esetpip 2 жыл бұрын

0% BNPL is just bait... If you add all your staggered payments and compared it to the actual price of the item, you will find out the extra bucks you paid.

@Oceansta 9 ай бұрын

There's no such thing as a free lunch 😅

@ralphfirst8188 2 жыл бұрын

from almost nothing to 5.86 Thank you Biden.

@andresisrael5817 2 жыл бұрын

The Book of Ezekiel classifies the charging of interest among the worst sins, denouncing it as an abomination and portraying usurers as shedding blood

@fgdgdg7201 Жыл бұрын

Also quran

@Oceansta 9 ай бұрын

Think of it this way: interest is what is charged to offset the risk. There has to be a payoff.