What is Interest Rate?
Interest rate is the cost of borrowing money or the return on investment expressed as a percentage. It influences borrowing and spending decisions, monetary policy, and overall economic activity.
Interest rate is the cost of borrowing money or the return on investment expressed as a percentage. It influences borrowing and spending decisions, monetary policy, and overall economic activity.
Introduction: Interest rates, fundamentally, represent the cost of borrowing money or the return on investment for lenders. They are a critical economic tool used by central banks to control monetary policy, influence inflation, and stabilize the economy. Interest rates affect consumer spending, business investment, and the overall economic cycle. For individuals and businesses, understanding interest rates is essential for making informed decisions about loans, mortgages, savings, and investments. Fluctuations in interest rates can significantly impact financial markets, real estate values, and the economy at large.
Impact of Interest Rates:
Strategies in a Changing Interest Rate Environment: