Lowest Interest Rates
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Lowest Interest Rates: Trends and Outlook
As of October 2009, most central banks are offering the lowest interest rates, because they want to be sure of the global economy recovery before announcing a hike. Notwithstanding the marginal increases announced by the central banks of Australia and Norway, the interest rates are generally quite low.[br]
Lowest Interest Rates: Trends and Outlook
Interest rates across the world have been reduced to historical lows during 2008, reflecting the seriousness of the economic slowdown. The central banks of the USA, the UK, Russia, Brazil, Denmark, Israel and other nations have, in the past one year, cut their respective base rates to ward off deflation. Although several encouraging signs indicating economic recovery have been observed, factors like the high unemployment rate remains an area of concern. Such factors force central banks to be cautious about hiking their interest rates.
Central banks of several countries have indicated that they plan to continue with their soft monetary policies despite the seemingly improving economic scenario. According to the central banks, low interest rates are likely to remain until the pace of economic recovery increases and spreads to various sectors.
Lowest Interest Rates: Benefits
The lowest interest rates scenarioencourages borrowing and is favorable for those in need of money. Easier borrowing leads to increased spending, and boosts the economic growth of a country. So, the central banks of all countries follow a low interest policy to help boost their economic growth, consumption and spending. Such low interest rates, however, discourage savings. The recent downward trend in interest rates has led to some improvements in the mortgage segment; however, a full-fledged recovery in the global real estate segment is yet to happen.[br]
How to Get Loans at the Lowest Interest Rates
Every borrower wishes to obtain loans at the lowest interest rates. Borrowers can realize this aim by researching and comparing several options on the Internet. They can get quotes from various issuers and select the best out of those. Loans that call for a collateral generally carry lower interest rates than loans that do no seek any collateral. Also, the more secure a debt is, the lower is the interest rate charged.
