Banks have traditionally benefited from rate hikes to a certain extent. However, it is somewhat counterbalanced by rate hikes that could lead to decreases in lending demands and increases in default rates. The pause comes at the right time to allow the lending segment to grow and keep the default rates at an acceptable level. It will give a tremendous boost to mortgage loans, personal loans, business loans, and student loans in the near future. This pause will help economic growth by borrowing and further relieves different financial sectors that have been suppressed by the recent interest rate hikes.
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