How does interest rates impact the economy?

Lower interest rates reduce the cost of loans, encouraging consumer spending on big-ticket items like homes and cars.

Lower interest rates stimulate business investment by reducing the cost of financing capital projects.

Interest rate differentials impact currency values, affecting international trade and exports.

Interest rates to control inflation; higher rates may curb inflation, while lower rates can prevent deflation.

Mortgage rates directly influence the housing market, influencing home purchases and prices.