A few years ago, I read a statement from the Australian finance minister that he wants to keep interest rate high to give a fair return to retirees who depend on investment income for their retirement needs.
That was a wise finance minister.
Do we need a wise finance minister for Singapore?
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That was a wise finance minister.
Do we need a wise finance minister for Singapore?
https://tklcloud.com/Feedback/feedback2.aspx?id=1165
2 comments:
High interest rate will stifle business activity, make it more expensive & risky to expand, hire more staff, start new business/company. It also makes it more expensive & risky to buy property (more expensive mortgages).
High interest rates are needed only to fight commodity inflation or stubborn inflation.
Need to find a balance in-between. Good for savers & retirees on one hand, and good for investors and companies on the other hand.
Economists call the current very low interest rate environment as "Financial Repression". Singapore has it since 2000 & ongoing non-stop. We may become like Japan which has been financially repressed since the early-1990s.
US had it from 2009 till 2016. Now their interest rate & FD & savings interests has recovered quite a lot. Western Europe still having low or even -ve interest rates from 2011 till now.
this blog is informative, thanks. iSTOX
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