AndroBabu
2022-02-10

Please help me understand.

(1) As CPI increased, did they increased bank interest rates becoz of this?

(2) If CPI increases, will the market expected to go down??

Inflation Rises 7.5% over the past Year, the Highest since 1982
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Comments

  • TWeiT
    2022-02-10
    TWeiT
    CPI increase too high, Fed needs to control it. So need to tighten measures like increase interest rates. Reduce easy money and loans. Which will also strengthen USD. Hope this helps
    • TWeiT: 
      With the reduced money in the market, some will have to sell. Borrowing cost will increase, so market will have to fact in this and will drop accordingly.
    • AndroBabu: 
      Got it thanks.

      So if CPI increase, does the market expected to fall??

    • KLHuat: 
      Yes, agreed with you
  • superpopo
    2022-02-10
    superpopo
    no
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