Recently, citizens of Great Britain voted to exit the European Union. While the process of leaving the union will not happen overnight, the vote has caused economic uncertainly in global financial markets. Prior to this event, economists were of the opinion that we may see a slow rise in interest rates. This vote has reversed that thinking in the near term.
How it impacts the United States
Members that have been looking forward to the benefits of a gradually increasing interest rate environment as a way to increase their savings nest egg are going to have to wait longer as a result of this event. World financial markets are looking to United States Treasury securities as a safe place to invest. This increase in investment activity is driving yields lower – and lower yields on treasury securities equate to low interest rates on savings products that we have available to members.
Because the prosperity of our members is paramount to our cooperative mission, we remain on the lookout for opportunities during these times as well. Members considering travel to Europe may find it less expensive as a result of a weaker Euro and British pound in relation to the dollar. Another opportunity will be in lower mortgage interest rates. This helps members make the move from renting to home ownership. It also assists members in a variable rate loan or possibly a higher fixed rate to refinance and reduce their costs.
Not everyone will see these opportunities, but there are some out there during this times. Rest assured we remain focused on delivering value to all members regardless of global events, while at the same time remaining safe and stable, ensuring a strong cooperative for many years to come.