2026-01-13 20:34:00

Policy makers often overlook unintended consequences. The proposed 10% credit card interest rate cap raises a critical question: how will banks actually respond? Financial institutions might resort to tightening credit limits or withdrawing credit lines altogether. This potential credit contraction could ripple through consumer spending, debt markets, and broader financial conditions—effects worth monitoring given their influence on risk appetite and market dynamics.

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PensionDestroyer

· 1h ago

It's the same old trick again. As soon as the policy is announced, banks start acting up. A 10% interest rate cap? Just freeze credit limits directly. Retail investors are still the ones getting cut in the end.

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PortfolioAlert

· 01-13 20:59

The move by banks to tighten credit limits is old-fashioned but ruthless. Retail investors will find it difficult to even borrow money later on, let alone talk about consumption stimulation.

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SchrodingerGas

· 01-13 20:49

Typical policymaker thinking, only seeing the benefits of the interest rate cap, completely ignoring the subsequent game equilibrium... Banks will either tighten credit limits or withdraw entirely. Who will be responsible if the consumer side collapses then?

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DarkPoolWatcher

· 01-13 20:46

Will the banks really lower interest rates obediently? Think again. By then, the thresholds will only get higher and higher, making it even harder for retail investors to borrow money.

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