Is it okay to go on reducing bank interest rates?

  1. free4india profile image61
    free4indiaposted 6 years ago

    Can ordinary people of developing/underdeveloped countries who do not get even the basic amenities really survive in an economic growth through reduction of bank rates and investment in stock markets ?

    1. deweyduck profile image81
      deweyduckposted 6 years ago in reply to this

      Sure its okay.

      Depending on what you mean by "ordinary" people, I'll assume middle class, reducing interest rates would make it more affordable to get a loan. So I believe it would be beneficial for developing/underdeveloped countries because that sparks growth in business and the economy in general.

      If the developing country had a stock market, people who have the funds to invest into it would be wise to do so while interest rates are low.

      or..maybe I don't understand your question :\