The following are some effects:
Loans especially home loans: Lower interest rates will lead to better loan deals or possibilities of refinancing. Most will have more spare cash.
Investment opportunities: The bank account rates/ fixed deposit rates/ bonds/ bills will drop ( they have already dropped in anticipation of the rate cut). Investors will start to look for better returns.
Reits, emerging companies and companies that relies on heavy leverage: These stocks may have good potential growth and may give better dividends especially S reits.
Market volatility: The market will tend to adjust to the new interest rate environment. This volatility may lead to GOLDEN opportunities for buying stocks at a good price. Really looking forward đ to this.
Economy: For those that are not investing, the better loan rates will lead to more cash to spend. This may lead to increase spendings, more holidays etc. may also lead to positive stock market.
Of course these depends on the rate cut amount and reasons.
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