Can interest rate cuts truly stimulate consumption? This is a hot topic in the current financial market.

The latest policy idea is to release consumption potential by lowering credit card interest rates. The logical chain is clear: consumption rebounds → drives the economy → alleviates inflationary pressure. It seems reasonable.

But market concerns are also evident. If interest rates are forcibly kept around 10%, banks and credit card issuers will have a tough time. Net interest margins will be squeezed, and profit margins will shrink instantly.

Even more concerning is that credit card default rates have always been a stubborn problem. The current question becomes: can simply lowering interest rates alleviate this pressure?

If yes, then everyone benefits. But what if it can't? Then it becomes a ticking time bomb for financial institutions—if the policy goal of stimulating consumption is not achieved, default risks remain, interest spreads are cut, and under this triple pressure, these institutions will really struggle.

Currently, this is mainly a policy-level concept and is still in the negotiation stage, far from actual implementation. Market participants need to keep a close eye on subsequent developments, as this will directly impact the financial sector and overall economic expectations.