Lower interest rates may increase inequality and harm vulnerable

Economists are raising concerns about the effects of lower interest rates on the economy. They warn that reducing interest rates below 12% could hurt vulnerable groups, including pensioners, life insurance holders, and low-income individuals. These changes could reduce their savings and profits, further widening the gap between wealthy and poor citizens. Experts note that as the central bank moves from high interest rates to lower ones, many in the silver economy are feeling neglected. They are experiencing social marginalization due to decreased savings and profits, which leads to discrimination and alienation. Economists urge the government and central bank to create a balanced interest rate system that considers the needs of these groups. They suggest looking at successful practices from other countries to develop protective measures for the vulnerable. Despite government incentives and support, many businesses are still calling for further cuts in interest rates, which economists believe will not benefit wider society. They stress the importance of having a fair financial system that ensures equality for everyone. Dr. Mehmoodul Hassan Khan, an economic strategist, highlights that any financial policies must consider all sectors of the economy. He emphasizes the need for structural reform in business practices instead of simply lowering interest rates. Additionally, many local entrepreneurs are choosing to import products rather than produce them domestically. This shift has negative implications for the economy and for those who rely on local production for their livelihoods. The economists argue that comprehensive reforms are necessary to improve overall economic conditions.