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Central banks influence consumer saving primarily through monetary policy tools such as interest rates and quantitative easing. By lowering interest rates, a central bank makes borrowing cheaper and saving less attractive, encouraging consumers to spend rather than save. Conversely, raising interest rates can incentivize saving by offering better returns on savings accounts. Additionally, through policies that affect economic stability and inflation, central banks can indirectly shape consumer confidence and their propensity to save.

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4d ago

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