Readers Question: What effect do interest rates (either a rise, fall or steadying) have on both monetary and real wages? I think I’ve got my head around it, but I’m looking for a nicely explain summary (understanding that there are probably a million of contributing factors that can lead to a million outcomes!)
You are right, there is no direct link between interest rates and wages (either nominal or real), and there are thousands of possible combinations, which make it difficult to create simplistic answers. But, interest rates can have an impact on wages by affecting the rate of economic growth and inflation.
Interest rates and economic growth
Higher interest rates increase the cost of borrowing, so firms will cut back on investment and consumers will cut back on spending. This could lead to lower economic growth. With less demand and higher interest payments, firms may seek to cut wages (or increase wages at a slower rate)
Furthermore, if higher interest rates do have the desired effect of reducing the rate of economic growth, then as well as lower economic growth, we should get lower inflation. This will be another factor leading to lower nominal wage growth.
Fall in AD
In this case, higher interest rates have reduced AD, leading to lower inflation and lower economic growth.
With lower inflation, we would expect to see lower nominal wages. But, also real wages (nominal – inflation) may be less affected.
Suppose inflation is running at 4% and nominal wage growth is running at 6%. (real wages = 2% growth)
Higher interest rates may reduce inflation to 2% and nominal wage growth falls to 4%. (but, real wage stay at 2%)
A look at the economic effects of a cut in interest rates.
Summary
Lower interest rates make it cheaper to borrow. This tends to encourage spending and investment. This leads to higher aggregate demand (AD) and economic growth. This increase in AD may also cause inflationary pressures.
In theory, lower interest rates will:
Reduce the incentive to save. Lower interest rates give a smaller return from saving. This lower incentive to save will encourage consumers to spend rather than hold onto money.
Cheaper borrowing costs. Lower interest rates make the cost of borrowing cheaper. It will encourage consumers and firms to take out loans to finance greater spending and investment.
Lower mortgage interest payments. A fall in interest rates will reduce the monthly cost of mortgage repayments. This will leave householders with more disposable income and should cause a rise in consumer spending.
Rising asset prices. Lower interest rates make it more attractive to buy assets such as housing. This will cause a rise in house prices and therefore rise in wealth. Increased wealth will also encourage consumer spending as confidence will be higher. (wealth effect)
Depreciation in the exchange rate. If the UK reduce interest rates, it makes it relatively less attractive to save money in the UK (you would get a better rate of return in another country). Therefore there will be less demand for the Pound Sterling causing a fall in its value. A fall in the exchange rate makes UK exports more competitive and imports more expensive. This also helps to increase aggregate demand.
Overall, lower interest rates should cause a rise in Aggregate Demand (AD) = C + I + G + X – M. Lower interest rates help increase (C), (I) and (X-M)
UK interest rates
UK interest rates were cut in 2009 to try and increase economic growth after the recession of 2008/09, but the effect was limited by the difficult economic circumstances and the after-effects of the global credit crunch.
AD/AS diagram showing effect of a cut in interest rates
If lower interest rates cause a rise in AD, then it will lead to an increase in real GDP (higher rate of economic growth) and an increase in the inflation rate.
When interest rates were cut to 0.5% in March 2009, few would have predicted that interest rates would have stayed low in UK, US and the Eurozone for so long. Interest rates have stayed at zero for several years – defying several predictions that they will rise soon. Who benefits from low-interest rates and who …
The Bank of England set the base rate. The base rate is the rate at which they charge commercial banks to borrow from the Bank of England. In normal economic circumstances, this base rate will influence all the interest rates set by other banks and financial institutions. If the Bank of England cut the base …
It is not a good time to be a saver in the UK. Interest rates are 0.5% and inflation has been above 2% for a high proportion of the previous five years. Because inflation is higher than nominal interest rates, we are seeing negative real interest rates. This means many savers are seeing a decline in the real value of their savings. Pensioners who are relying on interest payments as income, are seeing a decline in their income.
Inflation and interest rates
In most of the post-war period we have seen positive real interest rates – Base rates above the headline inflation. This means that savers are protected from the effects of inflation.
H0wever, 2008 marks a sharp contrast, with Bank of England base rates falling to 0.5% and inflation reaching above 5%.
In recent months, inflation has fallen to below 2%, but that is still higher than base rates of 0.5%
Effectively, you are getting 0.5% return on your saving, but prices are going up 2%, so the real value of your savings is falling by 1.5%.
Base rates and bank rates
The contrast between base rates and inflation looks very high. But, actually bank savings rates have not fallen as much as base rates. This is because banks were short of money in the credit crunch and were keener to attract deposits than lend money. Therefore, when the Bank of England cut interest rates to 0.5%, commercial banks were not so keen to reduce their own interest rates by as much. Usually commercial bank rates closely follow base rates, but after 2008 we see a break in this correlation.
In 2008/09, base rates are cut from 5% to 0.5%, but fixed interest rates (series IUMWTFA) only fall to 2.5 / 3%. Interestingly since mid 2012, fixed interest rates have continued to fall closer to 1%. This suggests the banks are less desperate to attract saving deposits and so can reduce interest rates.
It is a similar story with instant access saving rates (series IUMB6VJ) Since mid 2012, rates have fallen from 1.6% to 0.6%. This suggest the financial sector is in better health, but it means a poorer return for savers.
However, if you look around, you can still see higher fixed rates for those willing to ‘lock their money away’
It also depends how much money you can save. For example, according to ‘Money Saving Expert‘ you could get 3.25% if you can put £25,000 away for 5 years. – hardly a great deal, but you would just about get a positive real interest rate.
Should the Bank of England do more for savers?
In the past few years, many groups representing savers have felt they have been ignored – and the government / Bank of England should have done more to give a better rate of return for savers.
However, the past five years have seen declining living standards for most groups of people – real wages have fallen. Unemployment has been very high. The cost of renting has been very high. Given the general economic decline, savers have not been alone in seeing falling living standards. It is complicated by the fact that people with high levels of saving are more likely to be household owners. Homeowners have seen record low mortgage interest payments and rising house prices, which, to some extent, have offset the fall in the return on savings.
Young people without savings, but paying rent, have seen a bigger squeeze on their living standards.
However, someone who is relying on their savings to pay rent, is definitely in a bind.
Readers Question: As the FED is talking about tapering and at the same time keeping interest rate low. How can they both go together? Tapering will raise yield as bond prices go down in absence of any freak buying. And interest rate will chase yield this causes interest rate to climb up.
Fed Tapering means that the Federal Reserve will begin to stop buying bonds, and no longer continue to create money and buy bonds. This tapering could also be seen as a preliminary to reversing quantitative easing and selling the bonds that have been accumulated.
It is important to bear in mind there are different interest rates in the economy.
Discount rate –set by Federal Reserve
Federal Funds rate – short term interbank lending rate, influenced by open market operations of the Fed.
Long term bond yields. – Effective interest rate on 10 year Treasury bonds.
Discount Rate
The Federal Reserve can change the discount rate (see: Federal Reserve discount rate). This is the rate that the Fed charges commercial banks to borrow directly from the Federal Reserve. This is a short-term interest rate because commercial banks borrow from the Federal Reserve to meet temporary shortfalls in their cash flow.
The Federal Reserve discount rate is currently 0.75% (link)
This Federal discount rate does influence other interest rates in the economy. If commercial banks find the discount rate has increased, then they are likely to increase their interest rates on loans to consumers. If commercial banks see the discount rate has increased, they tend to increase mortgage rates. Therefore, the Federal Reserve can influence other bank rates.
It is a similar situation in the UK. The Bank of England change the base rate. This base rate usually has a strong influence on other bank rates in the economy.
Effective federal funds rate
Another important interest rate in the economy is the effective Federal Funds Rate – see FEDFUNDS. This is the short-term inter bank lending rate. It is influenced by the Fed discount rate, but also the willingness of banks to lend to each other. It is also, influence by the Federal Reserve’s actions in open market operations. The FED has a target for the Federal Funds rate. When the Fed starts to sell bonds, you would expect this to depress the price of bonds and push up the Federal Funds Rate. With the Fed currently buying bonds, this has pushed up bond valued and decreased interest rates.
Readers Question: Is it possible to have negative interest rates?
Negative interest rates occur when a bank charges you money for the privilege of looking after your savings. It is possible to have a negative interest rate (e.g. -0.5%) Although it is quite rare. The Bank of England have recently talked about the possibility of a negative interest rate for commercial bank deposits at the Bank of England.
Why is Bank of England Talking about a negative interest rate?
The UK economy is still stagnant with little sign of economic growth. Usually, a prolonged recession would lead to lower interest rates to encourage borrowing. However, since interest rates fell to 0.5% in March 2009, interest rates have stayed the same as there is little precedent for cutting interest rates further.
The Bank has tried quantitative easing but this has not really encouraged bank lending and normal economic activity.
The Bank of England, in particular want to encourage lending to small businesses – small businesses have complained it is very difficult to borrow from commercial banks in the present economic climate. At the moment, commercial banks prefer to increase their cash reserves, which they deposit at Bank of England and not lend. At the moment commercial banks get a small interest rate payment 0.5% on their deposits. However, if there is a cost for depositing money at the Bank of England, they would have a greater incentive to lend money. In theory, commercial banks will lend more and this would stimulate business investment and economic growth. Higher lending would also help to reduce unemployment and reduce the cyclical budget deficit.
The Bank of England would probably introduce a new deposit rate. For example, deposits over £1billion at the Bank of England would be charged the negative interest rate.
The first £1 billion may still receive the base rate of +0.5%. This means that small building societies would not face a negative interest rate. This could cause problems because a negative interest rate could mean they would have to pay people with tracker mortgages (mortgages that follow base rate), and they could go out of business because they couldn’t recoup money from savers. The deposit rate would mainly affect the large commercial banks with high cash reserves.
What would happen to saving rates?
If the Bank of England had a negative interest rates on deposits, commercial banks would be less keen to encourage banks deposits, therefore they may reduce interest rates on saving accounts. Savers would see a fall in income.
In theory, lower interest rates may encourage spending (rather than saving (substitution effect). However, consumers may be quite inelastic to the interest rate. It may also be outweighed by the decline in income of savers who rely on interest payments (income effect).
What are the Problems of a Negative Interest Rate?
Some fear a negative interest rate could encourage a new lending boom. Banks might be so keen to get rid of cash, they start lending to business without evaluating how good the loan is. Austrian economists are particularly critical of negative interest rates as they argue it can lead to asset booms and distort the market. However, there is no sign of a new lending boom in the short term, the real problem is that banks don’t want to lend because of the economic situation.
Savers will lose out. With inflation already above target, a fall in the saving rate will lead to an even bigger negative real interest rate. Savers will see a fall in their real wealth and living standards.
Banks may still not want to lend. The main thing holding back lending may be the overall state of the economy. Even cutting interest rates to negative may fail to increase lending.
You can read more at our privacy page, where you can change preferences whenever you wish.
Manage consent
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
__cfduid
1 month
The cookie is used by cdn services like CloudFlare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information.
AWSALBCORS
7 days
This cookie is used for load balancing services provded by Amazon inorder to optimize the user experience. Amazon has updated the ALB and CLB so that customers can continue to use the CORS request with stickness.
cookielawinfo-checkbox-advertisement
1 year
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement".
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
gdpr_status
6 months 2 days
This cookie is set by the provider Media.net. This cookie is used to check the status whether the user has accepted the cookie consent box. It also helps in not showing the cookie consent box upon re-entry to the website.
SERVERID
past
This cookie is used to assign the user to a specific server, thus to provide a improved and faster server time. It remembers which server had delivered the last page on to the browser. It also helps in load balancing.
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Cookie
Duration
Description
bcookie
2 years
This cookie is set by linkedIn. The purpose of the cookie is to enable LinkedIn functionalities on the page.
lang
session
This cookie is used to store the language preferences of a user to serve up content in that stored language the next time user visit the website.
lidc
1 day
This cookie is set by LinkedIn and used for routing.
na_id
1 year 1 month
This cookie is set by Addthis.com to enable sharing of links on social media platforms like Facebook and Twitter
na_rn
1 month
This cookie is used to recognize the visitor upon re-entry. This cookie allows to collect information on user behaviour and allows sharing function provided by Addthis.com
na_sc_e
1 month
This cookie is used to recognize the visitor upon re-entry. This cookie allows to collect information on user behaviour and allows sharing function provided by Addthis.com
na_sr
1 month
This cookie is set by Addthis.com. This cookie is used for sharing of links on social media platforms.
na_srp
1 minute
This cookie is used to recognize the visitor upon re-entry. This cookie allows to collect information on user behaviour and allows sharing function provided by Addthis.com
na_tc
1 year 1 month
This cookie is set by the provider Addthis. This cookie is used for social media sharing tracking service.
ouid
1 year 1 month
The cookie is set by Addthis which enables the content of the website to be shared across different networking and social sharing websites.
pid
1 year 1 month
Helps users identify the users and lets the users use twitter related features from the webpage they are visiting.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Cookie
Duration
Description
_gat
1 minute
This cookies is installed by Google Universal Analytics to throttle the request rate to limit the colllection of data on high traffic sites.
d
3 months
This cookie tracks anonymous information on how visitors use the website.
guid2
1 year
This cookie is set by the provider Delta projects. This cookie is used to track the individual sessions on the website, which allows the website to compile statistical data from multiple visits. This generated data is used for creating leads for marketing purposes.
YSC
session
This cookies is set by Youtube and is used to track the views of embedded videos.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Cookie
Duration
Description
__gads
1 year 24 days
This cookie is set by Google and stored under the name dounleclick.com. This cookie is used to track how many times users see a particular advert which helps in measuring the success of the campaign and calculate the revenue generated by the campaign. These cookies can only be read from the domain that it is set on so it will not track any data while browsing through another sites.
_ga
2 years
This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors.
_gid
1 day
This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form.
_gu
1 month
This cookie is set by the provider Getsitecontrol. This cookie is used to distinguish the users.
ANON_ID
3 months
This cookie is provided by Tribalfusion. The cookie is used to give a unique number to visitors, and collects data on user behaviour like what page have been visited. This cookie also helps to understand which sale has been generated by as a result of the advertisement served by third party.
APID
1 year
This cookie is used to store information of how a user behaves on multiple websites. This information is them used to customize the relevant ads to be displayed to the users.
eud
1 year 24 days
The domain of this cookie is owned by Rocketfuel. This cookie is used to sync with partner systems to identify the users. This cookie contains partner user IDs and last successful match time.
GUC
This cookie is set by the provider Yahoo. This cookie is used for Yahoo conversion tracking.
is_unique
5 years
This cookie is set by StatCounter Anaytics. The cookie is used to determine whether a user is a first-time or a returning visitor and to estimate the accumulated unique visits per site.
sc_is_visitor_unique
2 years
This cookie is used to store a random ID to avoid counting a visitor more than once.
sync-his
1 year
The domain of this cookie is owned by Videology.This cookie is used in association with the cookie "tidal_ttid". This cookie is used to keep track of the last day when the user ID synced with a partner. This is done by matching "tidal_ttid" with a partner's user ID inorder to recognise the same user.
UserID1
3 months
The cookie sets a unique anonymous ID for a website visitor. This ID is used to continue to identify users across different sessions and track their activities on the website. The data collected is used for analysis.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Cookie
Duration
Description
__kuid
7 days
This cookie is used to collect information of the visitors, this informations is then stored as a ID string. The ID information strings is used to target groups having similar preferences, or for targeted ads.
_rxuuid
1 year
The main purpose of this cookie is targeting, advertesing and effective marketing. This cookie is used to set a unique ID to the visitors, which allow third party advertisers to target the visitors with relevant advertisement up to 1 year.
ab
1 year
This domain of this cookie is owned by agkn. The cookie is used for targeting and advertising purposes.
ANON_ID_old
3 months
This cookie helps to categorise the users interest and to create profiles in terms of resales of targeted marketing. This cookie is used to collect user information such as what pages have been viewed on the website for creating profiles.
APIDTS
1 day
This cookie is set by the provider Yahoo.com. This coookie is used to collect data on visitor preference and behaviour on website inorder to serve them with relevant content and advertisement.
CMID
1 year
The cookie is set by CasaleMedia. The cookie is used to collect information about the usage behavior for targeted advertising.
CMPRO
3 months
This cookie is set by Casalemedia and is used for targeted advertisement purposes.
CMPS
3 months
This cookie is set by Casalemedia and is used for targeted advertisement purposes.
CMRUM3
1 year
This cookie is set by Casalemedia and is used for targeted advertisement purposes.
CMST
1 day
The cookie is set by CasaleMedia. The cookie is used to collect information about the usage behavior for targeted advertising.
DSID
1 hour
This cookie is setup by doubleclick.net. This cookie is used by Google to make advertising more engaging to users and are stored under doubleclick.net. It contains an encrypted unique ID.
dyn_u
1 year
This cookie is used collect information on user behaviour and interaction for serving them with relevant ads and to optimize the website.
everest_g_v2
1 year
The cookie is set under eversttech.net domain. The purpose of the cookie is to map clicks to other events on the client's website.
gi_u
1 year
The cookie is set by Adhigh. The cookie is used for ad serving purposes and track user online behaviour. The cookie also stores the number of time the same ad was delivered, it shows the effectiveness of each ad.
google_push
5 minutes
This cookie is set by the Bidswitch. This cookie is used to collect statistical data related to the user website visit such as the number of visits, average time spent on the website and what pages have been loaded. This collected information is used to sort out the users based on demographics and geographical locations inorder to serve them with relevant online advertising.
HAPLB5S
This cookie is set by the provider Sonobi. This cookie is used to track the visitors on multiple webiste to serve them with relevant ads.
id
3 months
The main purpose of this cookie is targeting and advertising. It is used to create a profile of the user's interest and to show relevant ads on their site. This Cookie is set by DoubleClick which is owned by Google.
IDE
1 year 24 days
Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile.
IDSYNC
1 year
This cookie is used for advertising purposes.
KADUSERCOOKIE
3 months
The cookie is set by pubmatic.com for identifying the visitors' website or device from which they visit PubMatic's partners' website.
KTPCACOOKIE
1 day
This cookie is set by pubmatic.com for the purpose of checking if third-party cookies are enabled on the user's website.
ljt_reader
1 year
This is a Lijit Advertising Platform cookie. The cookie is used for recognizing the browser or device when users return to their site or one of their partner's site.
mc
1 year 1 month
This cookie is associated with Quantserve to track anonymously how a user interact with the website.
mdata
1 year 1 month
The domain of this cookie is owned by Media Innovation group. This cookie registers a unique ID used to identify a visitor on their revisit inorder to serve them targeted ads.
mt_mop
1 month
Stores information about how the user uses the website such as what pages have been loaded and any other advertisement before visiting the website for the purpose of targeted advertisements.
ouuid
1 year
This cookie is used to store the unique visitor ID which helps in identifying the user on their revisit, to serve retargeted ads to the visitor.
ouuid_lu
1 year
This cookie is used for serving the retargeted ads to the users. This cookie is used in association with the cookie "ouuid".
ov
1 year 1 month
This cookie is set by the provider mookie1.com. This cookie is used for serving the user with relevant content and advertisement.
pxrc
2 months
The purpose of the cookie is to identify a visitor to serve relevant advertisement.
rlas3
1 year
The cookie is set by rlcdn.com. The cookie is used to serve relevant ads to the visitor as well as limit the time the visitor sees an and also measure the effectiveness of the campaign.
rud
1 year 24 days
The domain of this cookie is owned by Rocketfuel. The main purpose of this cookie is advertising. This cookie is used to identify an user by an alphanumeric ID. It register the user data like IP, location, visited website, ads clicked etc with this it optimize the ads display based on user behaviour.
ruds
session
The domain of this cookie is owned by Rocketfuel. This cookie is a session cookie version of the 'rud' cookie. It contain the user ID information. It is used to deliver targeted advertising across the networks.
sa-user-id
1 year
The cookie is set by StackAdapt used for advertisement purposes.
sa-user-id-v2
1 year
The cookie is set by StackAdapt used for advertisement purposes.
smd
1 year 24 days
This domain of this cookie is owned by Rocketfuel. This cookie is used to provide the visitor with relevant content and advertisement.
ssi
1 year
This cookie is set by Sitescout.This cookie is used for marketing and advertising. The cookie stores a unique ID used for identifying the return users device and to provide them with relevant ads.
stx_user_id
1 year
The domain of this cookie is owned by the Sharethrough. This cookie is used for advertising services.
suid_legacy
1 year
This cookie is used to collect information on user preference and interactioin with the website campaign content. This cookie is used for promoting events and products by the webiste owners on CRM-campaign-platform.
test_cookie
15 minutes
This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies.
tidal_ttid
1 year
This cookie is set by Videology. The cookie stores a videology unique identifier. It helps to know whether a visitor has seen the ad and clicked or not.
tluid
3 months
This cookie is set by the provider AdRoll.This cookie is used to identify the visitor and to serve them with relevant ads by collecting user behaviour from multiple websites.
tuuid
1 year
This cookie is set by .bidswitch.net. The cookies stores a unique ID for the purpose of the determining what adverts the users have seen if you have visited any of the advertisers website. The information is used for determining when and how often users will see a certain banner.
tuuid_lu
1 year
This cookie is set by .bidswitch.net. The cookies stores a unique ID for the purpose of the determining what adverts the users have seen if you have visited any of the advertisers website. The information is used for determining when and how often users will see a certain banner.
uid
2 months
This cookie is used to measure the number and behavior of the visitors to the website anonymously. The data includes the number of visits, average duration of the visit on the website, pages visited, etc. for the purpose of better understanding user preferences for targeted advertisments.
uuid
1 year 1 month
To optimize ad relevance by collecting visitor data from multiple websites such as what pages have been loaded.
uuid2
3 months
This cookies is set by AppNexus. The cookies stores information that helps in distinguishing between devices and browsers. This information us used to select advertisements served by the platform and assess the performance of the advertisement and attribute payment for those advertisements.
VISITOR_INFO1_LIVE
5 months 27 days
This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website.
wfivefivec
1 year 1 month
The domain of this cookie is owned by Dataxu. The main business activity of this cookie is targeting and advertising. This cookie tracks the advertisement report which helps us to improve the marketing activity.