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Central banks regularly bring about changes in the official interest rates in response to an economic activity. Interest rates are raised when the economy is robust and lowered when it is sluggish. A change in the rate of borrowing can have a ripple effect on the economy. In today’s Beyond Just Money, we discuss how a change in the interest rate can impact the economy both positively and negatively.
By Kalkine MediaCentral banks regularly bring about changes in the official interest rates in response to an economic activity. Interest rates are raised when the economy is robust and lowered when it is sluggish. A change in the rate of borrowing can have a ripple effect on the economy. In today’s Beyond Just Money, we discuss how a change in the interest rate can impact the economy both positively and negatively.