The Banking Supervision Committee, on the eve of the next meeting of the Monetary Policy Council, suggested to banks that when determining the creditworthiness of potential borrowers, they assume that interest rates may rise by 5%. A reference rate of 2.75% would have it 7.75 percent. What does this mean for practically all those who pay off their debts now – from credit card loans to several hundred thousand mortgage loans? Currently, on Tuesday, March 8, 2022, the Monetary Policy Council will raise interest rates by another 0.75 percent, but loan rates will reach 14 percent as of tomorrow.
Breaking news. The Monetary Policy Council had raised interest rates today, March 8, by 0.75 percent. The reference rate, important to borrowers, has been at 3.5 percent since March 9, and the maximum interest rate on loans is 14 percent.
But this is not the end. After raising the interest rate and holding a special conference for the governor of the National National Bank, which announced the increase in interest rates until the end of inflation, analysts began to address the possibility of interest rates at the level of 5 percent. And even higher in the near term as usual, not horrific. what do you mean? People planning to get consumer loans in the near future should take into account the real possibility that they will pay them back in a few months at an interest rate of more than 20%, or maybe even 30%. annually. This means that taking a certain amount of the loan for a period of four years, you will have to return the amount borrowed during these 48 months, plus 75% of it. as the sum of interest.
This will make many people give up buying on credit, and weaken demand, which in turn will slow down price growth, because in the absence of customers, traders will have to encourage them by lowering prices. But this has its downside – a fall in demand means full warehouses and a slowdown in production, that is, a reversal of the upward trend in the economy; Lack of timely control will lead to increased unemployment, recession and even economic crisis.
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