Governments Hit Banks for Low Deposit Rates

The video discusses the role of central banks in encouraging savings to control inflation by raising deposit rates. However, the current economic cycle is different as banks are not competing for deposits due to excess cash from pandemic savings. This lack of competition keeps deposit rates low. Consumers are advised to be vigilant and shop around for the best rates, as there can be significant differences even within the same bank.

What are central banks concerned about regarding consumer behavior?

Why are banks currently not raising deposit rates despite having cash?

What impact did the pandemic have on consumer savings and bank competition?

How does competition among banks affect deposit rates?

What should consumers do to ensure they are getting the best deposit rates?