“Another interest rate cut in the US, coupled with very low and in some cases negative rates in Europe will adversely impact US banks,” said Mayra Rodriguez Valladares at MRV Associates. “They will soon face a wave of mortgage borrowers who will want to refinance to lower-rate mortgages,” she added. “Also, any new mortgages and other types of loans will be at lower rates, compressing banks’ net interest margins.”

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