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Is it okay to go on reducing bank interest rates?

  1. free4india profile image58
    free4indiaposted 7 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 image75
      deweyduckposted 7 years agoin 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 :\