Low interest rates

It's exciting now. It remains unclear whether the shift in global central bank interest rates really deserves the name. The US Federal Reserve is going back and forth over whether it should take the first step to cut interest rates in September. In June, the European Central Bank dared to cut interest rates in the eurozone for the first time in five years. But there are already discussions about whether that is too early, and whether more interest rate moves could follow this year – what kind of interest rate shift worthy of the name is actually expected. The downward trend in consumer interest rates is correspondingly wavering. Construction interest rates had already fallen at the beginning of the year. However, in the past few months it has increased at times before the homeopathic dosage has now decreased. As with rising interest rates, banks are now trying to expand their margins by cutting savings rates faster and further than their loan rates. These demands can only be limited by competition. The creditworthiness of the borrower plays a decisive role, especially with regard to installment loans, which are still given at very high interest rates: only borrowers with very good creditworthiness pay the lowest interest rates – and these are often the ones who need the installment loan the least. It is recommended to exercise a certain degree of caution when purchasing consumer goods on credit, even in times of low interest rates.