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RE: Signalling for 20% HBD interest
One other question does this 20% to HBDs on savings go on being printed when the Haircut rule comes into play and HBD stops getting paid out as rewards?
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You are viewing a single comment's thread:
One other question does this 20% to HBDs on savings go on being printed when the Haircut rule comes into play and HBD stops getting paid out as rewards?
Interest isn't affected by haircut but if conditions called for it witnesses could consider changing the rate including to zero. That might or might not be a good idea since it would reduce supply but could also discourage people from holding their HBD and make it harder to recover.
Cheers, if we were going to vary the 20% in any way it would need to be VERY clear I think under what conditions it can vary, easier to just keep it the same!
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What @smooth said