Notes on the Terms I Keep Hearing in the News These Days
Exchange rates, interest rates—these topics come up almost daily, but I’m only keeping up with the big picture. In the end, what matters seems to be how they affect my own economic activity.
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Fair. Whether the exchange rate hits 1500 or not, my paycheck stays the same, so whatever.
But isn't that 'big picture' kind of vague? Ultimately, the timing for switching loans depends on the direction of interest rates... I just put the Bank of Korea base rate announcement dates in my calendar and watch those. Exchange rates hit your shopping cart immediately through import prices, so you feel them quickly, while interest rates are only felt by people with loans/deposits, so their importance probably differs from person to person.
Well, that's a bit... If you just follow the news cycle, you're always behind. By the time indicators are announced, they've already been priced in.
Oh, I didn’t know this — the idea of keeping track of base rate announcement dates.