... stabilize prices. Supporting the economy. When the economy slows down, the Central Bank can lower the key rate to stimulate growth. More accessible loans encourage companies and people to spend and invest, which supports economic development. How does ... ... affect us directly, but its changes can be felt in everyday life. Here is how it affects the financial aspects we face: Loans and mortgages. When the key rate rises, banks raise rates on mortgages and consumer loans. This means that loans become more expensive,...

... or if high mortgage rates are cooling the market. PulteGroup (PHM) and D.R. Horton (DHI) – the largest home builders in the US. Their metrics (number of homes sold, new orders, average prices) are critically important against the backdrop of rising mortgage rates and changes in the real estate market. If builders show confident growth, it will serve as a positive signal for the entire housing market. Conversely, weak data could heighten concerns about housing affordability for buyers and slow down the construction sector. Equifax (EFX) and Synchrony Financial (SYF) – representatives ...

... January 16, other major players in the U.S. banking sector—Bank of America (BAC) and Morgan Stanley (MS)—will unveil their results. Analysts anticipate: Bank of America (BAC): Potential profit growth driven by increased interest income and activity in mortgage lending. Steady growth in retail banking, even amid slowing economic activity. Morgan Stanley (MS): Attention will be focused on the asset management segment, traditionally a stronghold for the bank. Revenue growth from securities operations is expected due to a rebound ...

... inflation. It affects the cost of loans, savings, and spending in the economy, which helps either speed up or slow down price growth. Let's take a closer look at how it works. 1. Raising the key rate and inflation When the Central Bank raises the key rate,... ... businesses and households. This leads to several consequences: Decreased consumer demand: Higher rates make loans, including mortgages and consumer loans, less affordable. As a result, people spend less, and demand for goods and services decreases. Increased ...

... policies of central banks in many countries, among other factors. All of this contributes to the acceleration of global economic growth. As a result, individuals are accumulating disposable income that can be wisely invested, thereby increasing capital and ... ... a recession, which could happen as early as this year or, at the latest, next year. However, current forecasts are positive. Mortgage rates are expected to stimulate the real estate market, which in turn will positively impact other sectors of the economy ...