Here's a key blind spot in cutting interest rates too aggressively: slashing them to 10% would likely force credit card issuers to tighten lending standards dramatically. When margins compress and risk premiums evaporate, lenders don't just absorb losses—they pull back from the market altogether. This kind of credit contraction ripples through consumer spending and ultimately impacts the broader financial ecosystem, including crypto markets that depend on liquidity conditions.
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MetaverseHomeless
· 2h ago
Ultimately, it's just that liquidity has been locked up, and the crypto market is suffering as a result.
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JustAnotherWallet
· 3h ago
Interest rate cut to 10%? Haha, now credit card companies will have to tighten their standards. As liquidity shrinks, the entire crypto market will feel the pinch.
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IronHeadMiner
· 3h ago
With such a sharp rate cut, banks will tighten their policies. What will happen to crypto when liquidity dries up?
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WhaleWatcher
· 3h ago
Lower interest rates by 10%? Wake up, credit card companies are directly fleeing.
Here's a key blind spot in cutting interest rates too aggressively: slashing them to 10% would likely force credit card issuers to tighten lending standards dramatically. When margins compress and risk premiums evaporate, lenders don't just absorb losses—they pull back from the market altogether. This kind of credit contraction ripples through consumer spending and ultimately impacts the broader financial ecosystem, including crypto markets that depend on liquidity conditions.