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  1. #1

    changes in interest rates for 2017

    Hi,
    I am planning to buy a new property in Asia, but do not have any idea about interest rates in 2017.

    I read some blog but not clear to me, thus please suggest the interest rates for buy commercial real estate property ?

  2. #2
    Member
    Join Date
    Jun 2017
    Location
    Boca Raton
    Posts
    50
    Monetary policy is like a thermostat in a house. The whole point is to operate with a feedback loop: to look at current monetary conditions (changes in the demand for money), and adjust money supply in order to accommodate those changes, and allow the economy to continue on a stable path.

    It would be silly to ask the question, “should the thermostat plan to turn on the furnace or air conditioner next month?” Obviously, the “correct” operation of the thermostat next month, depends on what the current internal target temperature is, and what happens to the local weather (heat wave, cold winter storm) outside next month. It’s foolish for a feedback system to plan some kind of future action ahead of time. The whole point is to observe current needs, and react appropriately given currently observed conditions.

    The Federal Reserve “should” raise rates in 2017 … if and only if that would help the economy reach its planned targets during that future moment. Which is not something that we — or the Fed itself — can possibly know at this point in time.

    Making a current plan for future Fed action makes one a monetary policy fool.

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