Interbank lending rate is declining. Can investors expect stock market to grow?
Fri, Dec 2, 2016 4:43 PM on Latest, Featured, Stock Market,
Interbank lending rates is on a decreasing trend as of this week ending December 2. Last week, the interbank lending rate for commercial banks was 2.89%. The rate has reduced every day this week. The rate today was 2%.
Similarly, the interbank lending rates for development banks is also seen decreasing. It rose to 5.96% this Sunday, but eventually was on a downward trend. Today, the rate was 5.17%.
Interbank Lending rate has been on a downward trend since banks and financial institutions are now generating further liquidity. This may be a signal that banks will not need to provide higher interest rate to general public on deposits. If this happens, investors can expect the stock market to grow.
However, there is still a big question: is this decline permanent? Or will bank face further liquidity crunch?
Similarly, the interbank lending rates for development banks is also seen decreasing. It rose to 5.96% this Sunday, but eventually was on a downward trend. Today, the rate was 5.17%.
Interbank Lending rate has been on a downward trend since banks and financial institutions are now generating further liquidity. This may be a signal that banks will not need to provide higher interest rate to general public on deposits. If this happens, investors can expect the stock market to grow.
However, there is still a big question: is this decline permanent? Or will bank face further liquidity crunch?
