Can you tell me what this means please
" A lower interest rate reduces a currency’s relative expected return, so it has to cheapen until expected future appreciation overcomes the unfavorable interest rate differential. "

I know what each word means, but I am not sure what the sentence means.
Do you know what it means?
Thank you. =]

Question

Can you tell me what this means please
" A lower interest rate reduces a currency’s relative expected return, so it has to cheapen until expected future appreciation overcomes the unfavorable interest rate differential. "

I know what each word means, but I am not sure what the sentence means.
Do you know what it means?
Thank you. =]

Answer

"A lower interest rate decreases a currency's relative expected money back, so it goes down until expected future money overcomes the difference in interest rate before."

***I think this would be a simple sentence for it...

Hope this helps^^ Have a nice day!

Answer

i like the above answer.

mine is, as a currency's interest lowers, it is worth less than before, until the expected amount of money backs it again and it is worth more.

Answers · 2

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