Interest rates are really important because they affect how much money we spend and how much businesses invest. Let’s break it down:
When interest rates go up, it costs more to borrow money. This means people have less money to spend on things they want or need.
So, if you’re thinking about buying a new phone or car, higher interest rates might make you think twice about it.
Higher interest rates can also make businesses less likely to invest in new projects or equipment.
This means fewer new jobs and projects can happen when it’s more expensive to borrow money.
Central banks, like the Federal Reserve, change interest rates to manage how much money is available in the economy.
They do this to help control growth and keep the economy stable.
In short, when interest rates change, it affects all of us— from the things we buy to the decisions companies make.
Interest rates are really important because they affect how much money we spend and how much businesses invest. Let’s break it down:
When interest rates go up, it costs more to borrow money. This means people have less money to spend on things they want or need.
So, if you’re thinking about buying a new phone or car, higher interest rates might make you think twice about it.
Higher interest rates can also make businesses less likely to invest in new projects or equipment.
This means fewer new jobs and projects can happen when it’s more expensive to borrow money.
Central banks, like the Federal Reserve, change interest rates to manage how much money is available in the economy.
They do this to help control growth and keep the economy stable.
In short, when interest rates change, it affects all of us— from the things we buy to the decisions companies make.