The Ceiling Rate Policy: Redefining Monetary Stability and Consumer Protection in Modern Economies

This paper presents the Ceiling Rate Policy, a transformative approach to monetary policy that caps borrowing rates while maintaining a fixed interest rate spread for banks. Aimed at bolstering economic stability, safeguarding consumers, and fostering a predictable lending environment, this policy offers a viable alternative to traditional interest rate mechanisms. Through a thorough analysis of its theoretical foundation, practical application, and anticipated effects, we demonstrate how the Ceiling Rate Policy addresses critical issues in credit supply, inflation control, interest rate swaps and economic inequality. This research lays the groundwork for rethinking monetary policy in contemporary economies.