Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
The Real Cost of Zero Interest on Reserves
In this episode of Fexingo Business, Lucas and Luna unpack the often-overlooked mechanics of how central banks manage their balance sheets when interest rates are low. They focus on a specific structural shift: why paying interest on reserves is not just a technical tool but a fundamental change in how money flows through the economy. With the market environment anchored to October 23, 2026, they explore how this policy affects bank lending behavior, the shadow banking system, and ultimately, the cost of capital for everyday businesses. You will learn about the precise mechanism that turns…
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