Tough Pep lessons for retailers
Article Abstract:
Changes in interest rates may have little impact on savings and consumption for a variety of reasons, as is shown by the example of the United Kingdom economy. Many people cannot save due to low incomes or other reasons, so a rise in interest rates may have little impact on their savings habits. Other may save for a specific purpose, and a drop in interest rates may mean they have to save more rather than choosing to save less. Lower rates may also indicate that unemployment may rise, so people may save more. Spending may still be boosted by low interest rates since they increase debtors' incomes, and push up asset prices such as stocks and real estate.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Critical weeks for a judgement on toppy Wall Street
Article Abstract:
Financial markets are affected by events in the economy as a whole. There is concern in the United Kingdom that a rise in US inflation could lead to a rise in US interest rates, which could trigger stock price falls. Some stocks have performed well in the US, whether or not their sectors have performed well, so there are opportunities for stock selection even if there is caution about the economy as a whole. Meanwhile, United Kingdom interest rates could fall further, though this may not help retailers.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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