The consequences of lowering the key rate We know almost everything about the rate, but there is one thing left, sometimes it is lowered. What happens in this case? The effect is as follows: lower lending costs increase lending and investment, which can stimulate economic growth. But lowering the key rate can also lead to higher inflation and devaluation of the national currency, which may worsen the economic situation. In addition, the stock market may rise as investors look for higher yields in assets other than bonds. 29 views16:15
