3 ms·
European interest rates are crazy low, that's why.
by msgodel 1y ago
European interest rates are crazy low, that's why.
- Cthulhu_ 1y agoLower than their 2024 peak, but still much higher than before 2022 where for a long period it was at 0% or even negative interest (apparently, I don't know much about these things). It's at 2% or 2.4% at the moment, last time it was around that was in 2008. See https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html https://www.ecb.europa.eu/stats/policy_and_exchange_rates/ke... But I'm no economist and don't know what these numbers mean or what the consequences are.
- wqaatwt 1y agoIn general lower interest rates would cause your currency to depreciate.
- wqaatwt 1y agoWhich would mean that the Euro would depreciate significantly against the dollar under normal circumstances. Yet the Euro increased by > 10% despite the ECB cutting the rates quite significantly. Imagine how low the dollar would go if the Fed listened to Trump and cut to 1%..