Dear MEL Topic Readers,
US rate rise: Why it matters
No longer free! Money is now more expensive. If you borrow money, it’ll
cost you interest. How does it matter to the people and businesses in America
and the world?
US dollar is the world's most dominant reserve currency as well as the
most used currency in international transactions. So if the US interest rates rise,
not only borrowing costs for money but also payment costs will increase.
Why the key interest rate was raised in America? It has been
artificially and intentionally kept near-zero level in order to cope with the
financial crisis in 2008 and its aftermath. The US Fed bankers have been
observing the financial and job market closely for the last few years looking
for a timing to bring the key interest rate back to the track.
What are the impact to your day-to-day life?
Enjoy reading and learning what interest cost means to you.
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